October’s Historically Low Interest Rates Enhance Intra-Family Transfers
The IRS interest rates that apply to loans to family members and trusts are at historic lows for the month of October. For example, loans with maturities of 3 years or less have a rate of .16%; loans with maturities of more than 3 years but not more than 9 years have a 1.19% rate; and loans with maturities over 9 years have a 2.95% rate. In addition to intra-family loans, these rates apply to sales of assets to family members or trusts in exchange for a note.