Wealth Management Update

September 2024 AFRs and 7520 Rate

The September 2024 Section 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 4.8%, a decrease from the August 2024 rate of 5.2%. The September 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 4.57%, down from 4.95% in August;
• 3 to 9 years (the mid-term rate, compounded annually) is 4.02%, down from 4.34% in August; and
• 9 years or more (the long-term rate, compounded annually) is 4.37%, down from 4.52% in August.

In the Matter of the Niki and Darren Irrevocable Trust and the N and D Delaware Irrevocable Trust, No. 2019-0302-SG (Del. Ch., July 24, 2024) – Delaware Court of Chancery Holds Trust Decanting Void Due to Noncompliance with Statutory Requirements