Prepared for: Donor name
| A. Input Assumptions | |
|---|---|
| Date of transfer | September 11, 2024 |
| Fair market value of property transferred | $1,000,000.00 |
| The term income interest of the trust will last | 20 years |
| Unitrust payout rate | 5% |
| Payment frequency | Quarterly |
| Is payment at beginning or end of payment period | End |
| Number of months between the valuation date and the first payout rate for the first full taxable year of the trust | 3 |
| The discount rate (effective 9/2024) is | 4.8% |
| The mortality table is based on the census taken in | 2010 |
| B. Calculation of Present Value of Remainder Interest Factor: (Interpolation of Table U Factor for Term Certain) | ||
|---|---|---|
| 1. | Factor for Table F based on the payment period, the number of months between the valuation date and the first payment date, and the discount rate | 0.971206 |
| 2. | Adjusted payout rate (Table F factor * payout rate) | 4.86% |
| 3. | The nearest usable payout rate less than the Line 2 rate | 4.8% |
| 4. | Line 2 minus Line 3 | 0.06% |
| 5. | Line 4 divided by .20 percent | 0.28015 |
| 6. | Factor from Table U at the Line 3 rate | 0.373886 |
| 7. | Factor from Table U at the rate .20 percent higher than the Line 3 rate | 0.358486 |
| 8. | Line 6 minus Line 7 | 0.0154 |
| 9. | Line 8 times Line 5 (Interpolation adjustment) | 0.004314 |
| 10. | Present value of remainder interest factor (Line 6 - Line 9) | 0.369572 |
| C. Calculation of Gift or Estate Tax Deduction for Non-Grantor Trust | ||
|---|---|---|
| 1. | Fair market value of property transferred | $1,000,000.00 |
| 2. | Present value of remainder interest in unitrust factor (from Section B) | 0.369572 |
| 3. | Present value of remainder interest - remainder subject to gift or estate tax (Line 1 * Line 2) | $369,572.00 |
| 4. | Line 2 minus Line 3 (Gift or Estate Tax deduction) | $630,428.00 |
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