Applicable Federal Interest Rates for August

The AFRs for August, 2020, used for intra-family loans, sales to defective grantor trusts, and the IRC 7520 rate used for valuing retained interests follow:

Short-term rate (less than three years):  0.17%

Mid-term rate (three to nine years):  0.41%

Long-term rate (over nine years in duration):  1.12%

IRC 7520 rate, used for the valuation of retained interests in GRATs, QPRTs, and CRUTs:  0.4%

All of these historically low rates of interest help clients to transfer wealth gift tax-free.