The Highs and Lows of Rising Interest Rates

In recent years, the Section 7520 rates have been at historically low levels, but this could be a thing of the past as the rates have begun creeping up, and it’s likely they’ll continue to climb. Because transfer tax valuation rules are based, in part, on Section 7520 rates, certain charitable transfer tax planning techniques are directly affected by the prevailing rates. The impact is especially apparent with respect to annuity interests but also applies, albeit to a lesser extent, to unitrust interests.