September 2019 Interest Rates for GRATs, Sales to Defective
Grantor Trusts, Intra-Family Loans and Split-Interest Charitable
Trusts
The September Section 7520 rate for use with estate planning
techniques such as CRTs, CLTs, QPRTs and GRATs is 2.2%, which is
identical to the August rate. The September 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 1.78%, down slightly from 1.87% in
August.
The low Section 7520 rate and AFRs continue to present
potentially rewarding opportunities to fund GRATs in September with
depressed assets that are expected to perform better in the coming
years.
