Wealth Management Update

January 2023 AFRs and 7520 Rate

The January 2023 Section 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 4.6%, a decrease from the December 2022 rate of 5.2%. 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 4.5%, down from 4.55% in December;
• 3 to 9 years (the mid-term rate, compounded annually) is 3.85%, down from 4.27% in December; and
• 9 years or more (the long-term rate, compounded annually) is 3.84%, down from 4.34% in December.

New York Estate Tax – 2023 Basic Exclusion Amount