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