May 2019 7520 Rate

The 7520 Rate Continues to Drop. The 7520 rate for May 2019 is 2.8%. The 7520 rate has consistently declined since November 2018, when it was 3.6%. A table showing historical rates since 2008 is here. Some estate planning techniques benefit from declining rates. Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform better when interest rates are lower. On the other hand, Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs) are more effective when rates are higher. Source: Rev. Rul. 2019-12 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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7520 Rate for February 2019

Another Drop. The 7520 rate for February 2019 is 3.2%. This is an decrease from January, when the rate was 3.4%. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from declining rates. Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform better when interest rates are lower. On the other hand, Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs) do better when rates are higher. Source: Rev. Rul. 2019-04 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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7520 Rate for January 2019

The rate drops. The 7520 rate for January 2019 is 3.4%. This is an decrease from November and December 2018, when the rate was 3.6%. This is also a return to the rate that applied for July through October 2018. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from rising rates. These include Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). On the other hand, Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform worse when interest rates are higher. Source: Rev. Rul. 2019-03 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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7520 Rate for December 2018

Unchanged. The 7520 rate for December 2018 is 3.6%. This is the same as November. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from rising rates. These include Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). On the other hand, Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform worse when interest rates are higher. Source:  Rev. Rul. 2018-30 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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November 2018 7520 Rate

Moving up. The 7520 rate for November is 3.6%. This is an increase from previous months. The rate was 3.4% for the preceding 4 months. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from rising rates. These include Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). On the other hand, Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform worse when interest rates are higher. Source: Rev. Rul. 2018-28 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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October 2018 7520 Rate

No change. For October 2018, the 7520 rate will again be 3.4%. This is the fourth month in a row at this rate. A chart showing historical rates since 2008 is here. Some estate planning techniques benefit from rising rates. These include Qualified Personal Residence Trusts (QPRTs) and Charitable Remainder Annuity Trusts (CRATs). On the other hand, Grantor Retained Annuity Trusts (GRATs), sales to grantor trusts, and Charitable Lead Annuity Trusts (CLATs) perform worse when interest rates are higher. Source: Rev. Rul. 2018-27 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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September 2018 7520 Rate

Still flat. For September 2018, the 7520 rate will again be 3.4%. This is the fourth month in a row at this rate. A chart showing historical rates since 2008 is here.

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