7520 Rate for August 2018

Again, no change. After steadily ticking up for the first four months of the year, the 7520 rate remains flat for the third month in a row. For August 2018, the 7520 rate will again be 3.4%. 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. 2018-21 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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7520 Rate for July 2018

No change. The 7520 rate remains the same. For July 2018, the 7520 rate will be 3.4%. 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. 2018-19 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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7520 Rate for June 2018

Another increase. The 7520 rate continues to tick up for inflation. For June 2018, the 7520 rate will be 3.4%. 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. 2018-16 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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7520 Rate for May 2018

Unchanged The 7520 rate is unchanged from April. For May 2018, the 7520 rate will be 3.2%. 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. 2018-12 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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7520 Rate for April 2018

Another increase. The 7520 rate has increased again. For April 2018, the 7520 rate is 3.2%. 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. 2018-09 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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March 2018 7520 Rate Announced

The 7520 rate continues to tick up. For March 2018, the 7520 rate will be 3.0%. 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. 2018-06 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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February 7520 Rate: Another Increase

The 7520 rate for February 2018 will be 2.8%. 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. 2018-5 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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No Change in Jan. 2018 7520 Rate

The 7520 rate for January 2018 will be 2.6%. A chart showing historical rates since 2008 is here. Source: Rev. Rul. 2018-1 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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7520 Rate Will Rise Slightly in December

The 7520 rate for December 2017 will rise to 2.6%. A table showing historical 7520 rates since 2008 is here. Source: Rev. Rul. 2017-24 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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7520 Rate for Nov. 2017

The 7520 rate for November 2017 will be 2.4%. A table showing historical 7520 rates since 2008 is here. Source: Rev. Rul. 2017-21 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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Slight Decrease in October 2017 7520 Rate

The 7520 rate for October 2017 will drop to 2.2%, down from 2.4% in September. A table showing historical 7520 rates since 2008 is here.

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September 7520 Rate Remains the Same

The 7520 rate for September 2017 will stay at 2.4%. A table showing historical 7520 rates since 2008 is here.

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August 7520 Rate Announced

The 7520 rate for August 2017 will go back to 2.4%. A table showing historical 7520 rates since 2008 is here.

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May 7520 Rate: the Trend Continues

All year, the 7520 rate has vacillated between 2.4% and 2.6%. The current 7520 rate is 2.6%. It will go back to 2.4% in May. A table showing historical 7520 rates since 2008 is here. The effectiveness of various estate planning and charitable planning techniques is measured in terms of the 7520 rate. These techniques include Grantor Retained Annuity Trusts (GRATs), Qualified Personal Residence Trusts (QPRTs), Charitable Remainder Trusts (CRTs), and Charitable Lead Trusts (CLTs). If the assets transferred to these trusts appreciate faster than the 7520 rate in effect at the time of transfer, a plan would normally be considered successful in shifting value outside of a taxpayer’s estate for estate tax purposes.  Fortunately, the 7520 tends to be low […]

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The 7520 Rate for April Goes Back to 2.6%.

The 7520 rate for April 2017 is back to 2.6%. The rate has alternated between 2.4% and 2.6% all year. A table of recent rates is below. The effectiveness of various estate planning and charitable planning techniques is measured in terms of the 7520 rate. These techniques include Grantor Retained Annuity Trusts (GRATs), Qualified Personal Residence Trusts (QPRTs), Charitable Remainder Trusts (CRTs), and Charitable Lead Trusts (CLTs). If the assets transferred to these trusts appreciate faster than the 7520 rate in effect at the time of transfer, a plan would normally be considered successful in shifting value outside of a taxpayer’s estate for estate tax purposes.  Fortunately, the 7520 tends to be low relative to market rates of return. Source: Revenue […]

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March 7520 Rate Announced

The March 7520 rate is 2.4%. A table showing historical 7520 rates since 2008 is here. The effectiveness of various estate planning and charitable planning techniques is measured in terms of the 7520 rate. These techniques include Grantor Retained Annuity Trusts (GRATs), Qualified Personal Residence Trusts (QPRTs), Charitable Remainder Trusts (CRTs), and Charitable Lead Trusts (CLTs). If the assets transferred to these trusts appreciate faster than the 7520 rate in effect at the time of transfer, a plan would normally be considered successful in shifting value outside of a taxpayer’s estate for estate tax purposes.  Fortunately, the 7520 tends to be low relative to market rates of return. Source: Rev. Rul. 2017-7 (pdf) Posted by Joel D. Roettger, JD, LLM, EPLS

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7520 Rate Up Slightly in February

The 7520 rate for February 2017 is 2.6%. A table showing historical 7520 rates since 2008 is here. The effectiveness of various estate planning and charitable planning techniques is measured in terms of the 7520 rate. These techniques include Grantor Retained Annuity Trusts (GRATs), Qualified Personal Residence Trusts (QPRTs), Charitable Remainder Trusts (CRTs), and Charitable Lead Trusts (CLTs). If the assets transferred to these trusts appreciate faster than the 7520 rate in effect at the time of transfer, a plan would normally be considered successful in shifting value outside of a taxpayer’s estate for estate tax purposes.  Fortunately, the 7520 tends to be low relative to market rates of return. Source: Rev. Rul. 2017-4 Posted by Joel D. Roettger, JD, […]

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IRS Announces 7520 Rate for January 2017

The 7520 rate for January 2017 is 2.4%. A table showing historical 7520 rates since 2008 is here. The effectiveness of various estate planning and charitable planning techniques is measured in terms of the 7520 rate. These techniques include Grantor Retained Annuity Trusts (GRATs), Qualified Personal Residence Trusts (QPRTs), Charitable Remainder Trusts (CRTs), and Charitable Lead Trusts (CLTs). If the assets transferred to these trusts appreciate faster than the 7520 rate in effect at the time of transfer, a plan would normally be considered successful in shifting value outside of a taxpayer’s estate for estate tax purposes.  Fortunately, the 7520 tends to be low relative to market rates of return. Source: Revenue Ruling 2017-2 (pdf) Posted by Joel D. Roettger, JD, […]

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