Wealth Management Update

June 2023 Interest Rates for GRATs, Sales to Defective Grantor Trusts, Intra-Family Loans and Split-Interest Charitable Trusts

The June Section 7520 rate for use in estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 4.2%, a slight decrease from the May rate of 4.4%. The June applicable federal rate ("AFR") for use with a sale to a defective grantor trust or infra-family loan with a note having a duration of:

• 3 years of less (the short-term rate, compounded annually) is 4.43%, up from 4.30% in May.
• 3 years to 9 years (the mid-term rate, compounded annually) is 3.56%, down from 3.57% in May.
• 9 years or more (the long-term rate, compounded annually) is 3.79%, up from 3.72% in May.