How rising interest rates are cramping some estate planning moves

Higher interest rates have kickstarted a clutch of increased costs on everything from mortgages and credit card balances to car loans and revolving credit lines. They've also reshuffled the tax strategies wealthy investors favor to pass assets to their heirs.

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After three federal rate increases so far this year, certain techniques are winning, while others are losing. Wealth advisors caution that as the nation's central bank signals more hikes are yet to come, many previously established estate plans can yield unwanted surprises. Meanwhile, some plans drawn up during the past 15 or so years, when interest rates were mostly near zero, may have to be rejiggered or dumped in favor of? new plans.

"It's making people think about the strategies they haven't used in the past, and it's making us think a little bit harder about things that have been sort of no-brainers in the past," said Bryan Kirk, the director of financial and estate planning at Fiduciary Trust? International in San Mateo, California.

Advisors find clever ways to use the tax code to pass as much of a client's money on to heirs tax-free. A single person can shield an estate of just over $12 million (just over double that for married couples) from the 40% estate and gift taxes.?

Read: Rising interest rates cause pain for estate planning moves used by the ultrarich

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