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ARTICLE · 11 JANUARY 2021

Wealth Management Update - January 2021

Proskauer Rose LLP
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Certain federal interest rates increased slightly for January of 2021 while others remained the same. The January 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
Mitchell Gaswirth
Mitchell Gaswirth
Andrew Katzenstein
Andrew Katzenstein
Nathaniel Birdsall
Nathaniel Birdsall
Stephanie Heilborn
Stephanie Heilborn
Henry Leibowitz
Henry Leibowitz
Vanessa Maczko
Vanessa Maczko
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January 2021 Interest Rates for GRATs, Sales to Defective Grantor Trusts, Intra-Family Loans and Split Interest Charitable Trusts

Certain federal interest rates increased slightly for January of 2021 while others remained the same. The January 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-nine years (the mid-term rate, compounded annually) is .52%, up from 0.48% in December and down from 1.69% in January of 2020.

The January 2021 Section 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 0.6%, is unchanged from December and down from 2.0% in January of 2020.

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