San Jose Estate Planning Attorney

What are self-cancelling installment notes?

When an individual makes the decision to do estate planning, or advanced estate planning, there are many different legal options and tools available to help them protect both their assets and their estate. One of those tools is the self-cancelling installment note (SCIN). A SCIN is an installment sale wherein the buyer, usually a family member, purchases business interests, stocks, real estate or other assets, in installments rather than paying in full.

The seller then receives an installment note, typically written for a shorter term than the life expectancy of the seller. The purpose of the installment sale is to partially delay capital gains until later taxation years. In simple terms, a SCIN has all the attributes and benefits connected with an installment sale, with an extra benefit that the note and any remaining balance owed are cancelled upon the death of the seller.

The main objectives surrounding a SCIN are to avoid any gift tax on the transfer and to exclude any unpaid balance on the note from the seller's estate, after they die. This means the seller's taxes will be reduced while at the same time more money will be available for their beneficiaries.

If you have questions about whether self-cancelling installment notes are right for you or if you wish to set up a self-cancelling installment note, contact a San Jose estate planning lawyer at WealthPLAN, PC today. Their team will evaluate your specific situation and help you determine the best option in order to protect and preserve your estate both now and in the future.

Estate Planning Lawyer Serving San Jose

WealthPLAN, PC understands how important it is to protect your estate so your beneficiaries receive the assets you want them to receive. You also don't want your loved ones to be burdened or severely impacted by heavy estate taxes or creditors after you die. Smart estate planning is essential to protecting and preserving the estate you have worked so hard to build.

With over 30 years experience in estate planning, advanced estate planning, tax, trust administration and litigation, the firm is who you want preparing your self-cancelling installment notes. Don't let your assets dwindle away as a result of estate taxes and other taxes. Protect your assets so your beneficiaries receive your estate as you intended them to do.

Contact a San Jose estate planning attorney at WealthPLAN, PC today and schedule a confidential consultation. They will review your estate planning needs and help you decide if self-cancelling installment notes are right for you.