On May 16, the IRS announced the applicable federal rates for June 2019 in Rev.Rul. 2019-14. The Section 7520 rate remains at 2.8% (still a good time to consider GRATs). The annual short-term, midterm and long-term rates are up slightly to 2.37%, 2.38% and 2.76%. That Revenue Ruling can be found here: https://www.irs.gov/pub/irs-drop/rr-19-14.pdf
Category: GRATs
Interest Rate Inversion
Maybe it’s a good time to do GRATs, and maybe they really won’t work so well. Financial commentators in Forbes, Barron’s, and other publications, and in online sites like TheStreet.com and Bloomberg.com, have been talking about something called an “inverted yield curve” since last summer. Basically, they all explain that the yield curve is the…
Applicable Federal Rates for April 2019 – What Will May Bring?
On March 18, 2019, the IRS released the AFRs for April. The Section 7520 rate is 3.0%, down from 3.2% in February and March, and even lower than the 3.4% rate in January. The annual short-term, midterm and long-term rates are 2.52%, 2.55% and 2.89%. The Section 382 adjusted long-term rate is 2.19% and the…
Two Proposed Estate Tax Acts
The New Bernie Sanders Estate Tax Act In case you were wondering what Democrats are thinking about where they would like to take the estate tax laws, Thursday Senator Bernie Sanders (I-Vt.) clarified that by filing S. 309 named “For the 99.8% Act.” The act would radically modify federal estate, gift and generation-skipping transfer taxes….
ABA RPTE Spring Symposium – Hot Topics Breakfast
This edition is the first of a “few” which will be devoted to information gleaned from the American Bar Association’s Real Property, Trusts and Estates’ Spring Symposium in Washington, DC and will be my summary of a few selected sessions. Hopefully this will be of some interest to all of you. Hot Topics Breakfast Richard…
One-Year GRATs?
The regulations for grantor retained annuity trusts say that GRATs must be for a “specified term of years.” The word “years” seems to tell us that a GRAT must be for more than one year, but, then again, saying “specified term of year” is an odd phrase. Would one year be OK? It would certainly…