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July 2021 Interest Rates for GRATs, Sales to Defective Grantor
Trusts, Intra-Family Loans and Split Interest Charitable Trusts
AFRs
The July applicable federal rate ("AFR") for use with
a sale to a defective grantor trust, self-canceling installment
note ("SCIN") or intra-family loan with a note having a
duration of 3-9 years (the mid-term rate, compounded annually) is
1.00%, down from 1.02% in June and up from 0.45% in July of
2020.
The July Section 7520 rate for use with estate planning
techniques such as CRTs, CLTs, QPRTs and GRATs is 1.2%, which is