This SCIN-GRAT uses two well-known and documented techniques used to co-ordinate family gifting and tax efficiency.
The first is known as a Self-Cancelling Installment Note, or “SCIN” for reference. It is an installment note with a provision stating that if the Seller dies before the end of the note, then the note is deemed paid in full and the buyer need no longer make payments. The buyer pays a premium for this feature, a result of a “bargained for consideration” negotiation. Read More