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ARTICLE · 05 AUGUST 2021

Wealth Management Update - August 2021

Proskauer Rose LLP
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Federal interest rates were largely stable in August of 2021. The August applicable federal rate ("AFR") for use with a sale to a defective grantor trust,

United StatesWealth Management
Albert Gortz
Albert Gortz
David Pratt
David Pratt
Lindsay Rehns
Lindsay Rehns
Andrew Katzenstein
Andrew Katzenstein
Nathaniel Birdsall
Nathaniel Birdsall
Mitchell Gaswirth
Mitchell Gaswirth
Stephanie Heilborn
Stephanie Heilborn
Henry Leibowitz
Henry Leibowitz
Jay Waxenberg
Jay Waxenberg
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August 2021 Interest Rates for GRATs, Sales to Defective Grantor Trusts, Intra-Family Loans and Split-Interest Charitable Trusts AFRs

Federal interest rates were largely stable in August of 2021. The August applicable federal rate ("AFR") for use with a sale to a defective grantor trust, self-canceling installment note ("SCIN") or intra-family loan with a note having a duration of three to nine years (the mid-term rate, compounded annually) is 1.00%, the same as July but up from 0.41% in August of 2020.

The August Section 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 1.2%, as it has been every month since May 2021.

The AFRs (based on annual compounding) used in connection with intra-family loans are 0.19% for loans with a term of less than three years, 1.00% for loans with a term between three and nine years, and 1.89% for loans with a term of nine years or longer.

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