According to Myskowski, "The Internal Revenue Code section 7520 rate required for valuation of retained interests plummeted from 5.0% in December, 2007, to 3.4% in December, 2008, and has dropped to the dramatic low of 2.0% for February, 2009, a rate never before seen since the enactment of section 7520 in 1989."
The article further states, "Acutely low interest rates make for interesting times in the estate planning world. Rare opportunities arise to shift wealth at reduced transfer tax burdens, but a larger than usual gap opens in the comparative utility of various planning techniques, placing greater emphasis on the importance of analyzing the appropriate technique for any given client. Planning vehicles such as Grantor Retained Annuity Trusts (GRATs) become particularly attractive, while others, such as Qualified Personal Residence Trusts (QPRTs) lose some of their appeal (although plummeting real estate values make this technique viable despite the effect of low rates)."
To read the full article, click on: Wealth transfer planning.