Intrafamily Loans Can Be a Smart Move to Boost Wealth

Keeping your family’s wealth going — and growing — across future generations takes planning, and an intrafamily loan can be one tool in your toolbox.

A man hands a woman a thick stack of cash, only their hands showing.
(Image credit: Getty Images)

In today’s dynamic financial landscape, affluent families are always on the lookout for astute strategies to help preserve wealth and minimize tax burdens. One strategy they might want to consider is an intrafamily loan. This type of loan can be a calculated financial maneuver that lets families transfer assets, attain flexibility and instill responsible money management for future generations.

In the realm of wealth transfer, intrafamily loans provide a means to pass on wealth to descendants while mitigating the impact of gift and estate taxes. By lending money within the family at favorable interest rates, this strategy ensures a more efficient asset transfer, minimizing the tax burden and preserving familial wealth.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Derek A. Miser, Investment Adviser
Chief Managing Member, Investment Services, Miser Wealth Partners

Derek Miser serves as Chief Managing Member at Miser Wealth Partners, LLC, located in Knoxville, Tenn., and Tellico Village, Tenn. Miser Wealth Partners delivers family office services to successful retirees and entrepreneurs nationwide and in Puerto Rico. He recently published his first book, "Golden Years, Greener Pockets." This guide to tax efficiency for retirees is an excellent read for anyone contemplating or already retired.