• Utilize low interest rates by making new loans or refinancing existing loans.
• Take advantage of low valuations and interest rates by contributing an undervalued asset to a grantor retained annuity trust (“GRAT”) or selling it to a grantor trust in exchange for a promissory note. To the extent the transferred asset outperforms the assumed rate of return to the grantor (in the case of a GRAT) or the applicable federal interest rate (in the case of a sale), value will pass to the trust with no transfer tax consequence.
• Lock in the future appreciation in assets held in an underwater GRAT by swapping them out and contributing them to a new GRAT.
5. Volunteer for Pro Bono Projects. COVID-19 has created many new opportunities to get involved with meaningful pro bono work. In addition to providing personal satisfaction, volunteering can create new business opportunities, sharpen your skills and support your community. Check with your local bar association to get involved with these opportunities.
Anna Salek, partner, is the Private Client team leader at Shearman & Sterling. Noah McLaughlin is an associate in the Private Client practice at Shearman & Sterling.