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What are the estate tax effects of an installment loan?

Mary Ortega Asked: What are the estate tax effects of an installment loan?

One of my clients want an installment loan for their son. What are the tax effects of a note released through my client's will or trust? What would the tax effects be if the note is released in the loan agreement at the death of my client?

Answers:

Max Hoopla Answered:
There are too many variables for an answer in 25 words or less.This is a problem for an estate planner not a free quickie answer.



tro Answered:
your question is most confusing, are you asking if an installment note can be issued to a son thru the trust of the parent?
this is probably more a legal question than one of taxes, and it would seem to me that the trust is not in the position of making such a contract but the terms of the trust would need to be accessed



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Posted by getloans - July 2, 2011 at 4:00 pm

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