If the assets in your Walton GRAT increase in value faster than the 7520 rate would have predicted, there will be assets left over at the end of the trusts lifetime. With GRATs, for example, the value of the heirs taxable inheritance would not be based on a rough projection of future events calculated according to that 7520 interest rate, but rather on the real-life performance of the trust assets. GRATs are particularly handy when interest rates are lownamely, the federal 7520 interest rate, which averaged an unheard-of 0.61 percent during the first 12 months of the pandemic. Thanks to the step-up in basis (or stepped-up basis) rule, the values of our invested assetsstocks, artwork, real estatewould reset to their current fair market value when we die. For seldom have there existed better conditions for transferring vast fortunes to ones offspring.
The real-life interest rate is farther from the 7520 fixed figure than the 7520 estimated divided by 101.18.
( z0 have-degree :ARG1 ( z1 rate :mod ( z2 interest :mod ( z3 life ) ) ) :ARG2 ( z4 far :location ( z5 relative-position :op ( z6 figure :ARG1-of ( z7 fix ) ) ) ) :ARG3 ( z8 more ) :ARG4 ( z9 figure :quant 7520 :ARG1-of ( z10 estimate ) :ARG1-of ( z11 divide :ARG2 101.18 ) ) :rel ( z12 rate :mod 7520 ) )
(z0 / have-degree-91
    :ARG1 (z1 / rate
              :mod (z2 / interest
                       :mod (z3 / life)))
    :ARG2 (z4 / far
              :location (z5 / relative-position
                            :op1 (z6 / figure
                                     :ARG1-of (z7 / fix-03))))
    :ARG3 (z8 / more)
    :ARG4 (z9 / figure
              :quant 7520
              :ARG1-of (z10 / estimate-01)
              :ARG1-of (z11 / divide-01
                            :ARG2 101.18))
    :rel (z12 / rate
              :mod 7520))
The re al-life interest rate is farther from the 7520 fixed figure than the 7520 estimated divided by 101.18 .
z2 :mod z3
z1 :mod z2
z0 :ARG1 z1
z0 :ARG2 z4
z0 :ARG3 z8
z4 :location z5
z12 :mod 1
z6 :ARG1-of z7
z5 :op1 z6
z0 :ARG4 z9
z9 :quant 2
z9 :ARG1-of z10
z9 :ARG1-of z11
z11 :ARG2 0
z0 :rel z12