To purchase major real estate assets usually requires a loan from a bank. However, some financial planners are advising their clients to get intra-family loans. Usually this ensures the profit from the loan will stay within the estate and often times earns more on idle cash than a money market account would in this environment.
See Ann Marsh, "Planners Use Intra-Family Loans to Cut Out Middleman," financialplanning.com (Nov. 09, 2011).
h/t Gerry W. Beyer, "Intra-Family Loans Can Be Beneficial," Wills, Trusts & Estates Prof Blog (Dec. 06, 2011).
Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal.
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