Bear Market Provides Boost to a Little-Known Strategy; a Record Low Hurdle Rate

By Mike Spector

February's hurdle rate is 2%, down from 4.2% a year ago. Since many assets, such as securities or businesses, are severely depressed right now, it's likely that they'll appreciate by a margin well beyond the 2% hurdle rate in coming years.

Nancy Ridgley, a 68-year-old real-estate agent in Columbus, Ohio, reaped several hundred thousand dollars in 2004 after selling farmland she inherited from her uncle. Ms. Ridgley wanted to pass that money to her three daughters but also maintain her charitable giving. She also wanted to get the money out of her estate.