The 7520 Rate this month has fallen to 1%, which means that it has matched the all-time low. The only negative consequence of this number is that it is unlikely to decrease further. Taxpayers use the 7520 Rate to determine “the present value of annuities and remainder interests.” The tool is useful for those who are using a GRAT or a private annuity to transfer wealth. Currently, this includes those looking to take advantage of lifetime gift and estate tax exemption.
See Lawrence D. Hunt and David S. Raymon, The 7520 Rate Drops to All-Time Low, Partridge Snow & Hahn, LLP, JDSupra, Nov. 7, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
