Friday, January 20, 2012

February AFR

The February AFR's were released yesterday.  The rates remain at a historic low.  The short-term rate (.19%) and the Section 7520 rate (1.4%) remain the same as last month.  The mid-term rate (1.12%) and long-term rate (2.58%) have gone down slightly. With the gift tax exemption increased to $5,120,000, in 2012, this is an exceptional time to do life-time estate planning with your clients.  While you are meeting with them for the preparation of their income tax returns you should be discussing the fact that with rates this low they should be considering estate planning techniques that are available.

As always Neil and I remain available to assist you and your clients in this regard.

Bob Katz