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ARTICLE · 04 DECEMBER 2019

Wealth Management Update - December 2019

Proskauer Rose LLP
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The December Section 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 2.0%, which is unchanged from the November rate.

United StatesWealth Management
Nathan Brown
Nathan Brown
Albert Gortz
Albert Gortz
David Pratt
David Pratt
Lindsay Rehns
Lindsay Rehns
Mitchell Gaswirth
Mitchell Gaswirth
Andrew Katzenstein
Andrew Katzenstein
Nathaniel Birdsall
Nathaniel Birdsall
Stephanie Heilborn
Stephanie Heilborn
Henry Leibowitz
Henry Leibowitz
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December 2019 Interest Rates for GRATs, Sales to Defective Grantor Trusts, Intra-Family Loans and Split-Interest Charitable Trusts

The December Section 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 2.0%, which is unchanged from the November rate. The December 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 3 to 9 years (the mid-term rate, compounded annually) is 1.69%, up slightly from 1.59% in September.

The low Section 7520 rate and AFRs continue to present potentially rewarding opportunities to fund GRATs in December with depressed assets that are expected to perform better in the coming years.

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