Tuthill & Hughes, LLP  

Section 7520 Interest Rate

The July 7520 rate is 2.8%, down from the June rate of 3.2%.  This remarkably low assumed rate of return means that gifts to grantor retained annuity trusts or "GRATs" and charitable lead annuity trusts (or "CLATs"), among others, remain particularly attractive.  Congress continues to threaten to enact legislation eliminating short-term GRATs (those for a term of less than 10 years).  There may be no better time than the present to fund a GRAT.

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Tuthill & Hughes LLP
June 30, 2010