November 2019 Interest Rates for GRATs, Sales to Defective
Grantor Trusts, Intra-Family Loans and Split-Interest Charitable
Trusts
The November Section 7520 rate for use with estate planning
techniques such as CRTs, CLTs, QPRTs and GRATs is 2.0%, which is up
slightly from the October rate of 1.8%. The November 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 1.59%, up slightly from
1.51% in October.
The low Section 7520 rate and AFRs continue to present
potentially rewarding opportunities to fund GRATs in November with
depressed assets that are expected to perform better in the coming
years.
