Wealth Management Update

January 2025 AFRs and 7520 Rate

The January 2025 Section 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 5.2%, an increase from the December 2024 rate of 5.0%. The January applicable federal rate ("AFR") for use with a sale to a defective grantor trust or intra-family loan with a note having a duration of:

• 3 years or less (the short-term rate, compounded annually) is 4.33%, up from 4.30% in December;
• 3 to 9 years (the mid-term rate, compounded annually) is 4.24%, up from 4.18% in December; and
• 9 years or more (the long-term rate, compounded annually) is 4.53%, showing no change from the December rate.

In re Estate of Jesse L. Beck, 557 P.3d 1255 (Mont. Oct. 29, 2024) – Montana Supreme Court Holds That a Cell Phone Video Cannot Be Admitted to Probate