March 21, 2020

Update Regarding Estate Planning and Related Matters


Taking Advantage of Low Interest Rates

IRS interest rates that apply to Grantor Retained Annuity Trusts (“GRATs”) and loans will be close to historic lows starting April 1, 2020. The hurdle rate that applies to GRATs created in April will be only 1.2%, and the interest rate that applies to three to nine-year loans made in April by clients to individuals or trusts will be only .99%.  These rates may decline still further in May.  Given these low rates and declines in asset values, now may be an appropriate time to create new GRATs, make loans to family members and trusts, or sell assets in exchange for notes.  You may also wish to consider refinancing existing intra-family debt at lower rates.

Please click here to read the full client alert: Update Regarding Estate Planning and Related Matters