SUCCESSIONS

AFRs for August 2012 (unbelievably low!)

IRS announced the August 2012 AFRs.  After a quick search back through 2002, it appears that the Section 7520 rate has never been this low.  Coinciding with what may be the waning of the $5,120,000 lifetime gift tax exclusion, this presents tremendous transfer tax planning opportunities for the second half of 2012.

IRC Section 7520 Rate = 1.0%

AFRs

Annual

Semi-Annual

Quarterly

Monthly

Short-Term   (0-3) 0.25% 0.25% 0.25% 0.25%
Mid-Term    (3-9) 0.88% 0.88% 0.88% 0.88%
Long-Term    (9+) 2.23% 2.22% 2.21% 2.21%