While the lender will be taxed on the interest income they receive, and the promissory note may be included in the taxable estate for estate tax purposes, the borrower can use the proceeds to invest in an appreciating asset or business venture without owing any transfer tax on the return ...
You can also use this type of annuity to reduce your RMDs. You’re allowed to invest up to 25% of your IRA or 401(k) plan (or $125,000, whichever is less) in a QLAC without having to take required minimum distributions on that money when you turn 70½. You’ll ...