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