The IRS Section 7520 rate will remain at 2.8% for June.
Near Zero Out Grantor Retained Annuity Trusts, Sales to
Intentionally Defective Grantor Trusts and Charitable Lead Annuity
Trusts are attractive since interest rates are near historical
lows.
QPRT's would be more attractive at higher rates, however,
they do represent an asset that can be transferred by Clients who
would like to use exemption and do not have other appropriate
assets.
Grantor Retained Annuity Trusts (GRATs), Charitable Lead Annuity
Trusts (CLATs) and Private Annuities are positively affected by a
decrease in the Section 7520 rate.
Grantor Retained Annuity Trusts (GRATs), Charitable Lead Annuity
Trusts (CLATs) and Private Annuities are negatively affected by an
increase in the Section 7520 rate.
