Prescribed rate loan trusts
An income-splitting strategy in a low-interest rate environment
Do you have significant income from your non-registered investments that you don’t need for your living expenses? Do you have lower-income children, grandchildren or even parents who you’d like to support financially on an ongoing basis? If you answered yes to both questions, you may be interested in the prescribed rate loan trust strategy. It can help reduce the combined family tax burden, and it’s especially popular with interest rates as low as they are right now.