Discuss private annuities and SCINs and how the use of each would affect Robert Franklin and his daughter Elise in the sale of half of his share of Franklin Securities to her instead of in an installment sale. CHOOSE ALL that apply.

Discuss private annuities and SCINs and how the use of each would affect Robert Franklin and his daughter Elise in the sale of half of his share of Franklin Securities to her instead of in an installment sale. CHOOSE ALL that apply. If Robert dies early a SCIN would gift Elise the unpaid balance of the business. SCIN is only used when the transferor is in good health and is expected to live a long time. Private annuities are used to transfer an interest in property to a person of a younger generation in exchange for the person promising to pay an annuity to the transferor for life. The interest rate on a SCIN is lower than on an annuity sale. A self cancelling installment note transfers the property as an installment sale but the payments cancel when the person dies. Information Regarding Assets and Liabilities Franklin Securities (Robert is a 50% partner) The fair market value of Robert's interest is $5 million. Robert's current adjusted tax basis is $1 million. Details of the transfer of the business (sale) are as follows. - 50% : a 10-year installment sale to Mark Newhart for a down payment of 20% on January 1, 2022, and monthly payments beginning February 1, 2022 , at 10% annual interest - 50\%: self-canceling installment note (SCIN) or private annuity to Elise