March 2020 Interest Rates for GRATs, Sales to Defective Grantor
Trusts, Intra-Family Loans and Split Interest Charitable
Trusts
Important federal interest rates continue to hold relatively
steady. The March Section 7520 rate for use with estate planning
techniques such as CRTs, CLTs, QPRTs and GRATs is 1.8%,
representing a drop from 2.2% a month ago.
The March applicable federal rates ("AFRs") (based on
annual compounding) used in connection with intra-family loans are
1.50% for loans with a term of 3 years or less, 1.53% for loans
with a term between 3 and 9 years, and 1.93% for loans with a term
of longer than 9 years. The compression of the short-term and
mid-term rates is causing many clients to prefer the mid-term rate
in their estate planning transactions.
