3. Qualified Personal Residence Trusts (QPRT)
A QPRT is a trust that passes a primary residence or vacation home to heirs, while the grantor retains the right to live in the house for a number of years. This freezes the value of the property for gift and estate-tax purposes at the time of creation. The potential taxable gift is the present value of the asset in a certain number of years.
When the rates keep rising, the present value of the asset becomes lower, which means the gift value becomes lower.
4. Charitable Reminder Annuity Trusts (CRAT)
You could put assets into CRATs and name one or more charities as the ultimate beneficiary while continuing to draw income during your lifetime. The grantor is allowed a tax deduction at the time the CRAT is created.
When the interest rates become higher, the present value of the income stream the donor receives becomes lower, making the value of the gift to the charity higher for tax purposes.