Below are the recently announced Applicable Federal Rates (AFR) for May.

Semi
AFRs Annual Annual Quarterly Monthly

Short-term 0.28% 0.28% 0.28% 0.28%
Mid-term 1.30% 1.30% 1.30% 1.30%
Long-term 2.89% 2.87% 2.86% 2.85%

The Section 7520 rate is 1.6%

With the threat that the tax laws may change late this year or next year the continued low interest rate environment is still advantageous for wealth planning. Wealth transfer techniques such as GRAT’s, sales to IDGT, as well as funding ILITs and leveraging Insurance are all easier in such environments.