Prepared for: Donor name
| A. Input Assumptions | |||
|---|---|---|---|
| Date of transfer | October 7, 2026 | ||
| Fair market value of property transferred | $100,000.00 | ||
| Nearest age on the date of the gift for Beneficiary 1 is | 68 | ||
| Date of first payment | 4/1/2034 | ||
| Annuity starting date (payment period before 1st payment) | January 1, 2034 | ||
| Annual annuity rate for immediate annuity | 7% | ||
| Payment frequency | Quarterly | ||
| Prorate first payment or Full first payment? | Prorate | ||
| Deferred annuity interest adjustment factor | 1.399029 | ||
| Annual annuity rate adjusted for deferral | 9.8% | ||
| The discount rate (effective 10/2026) is | 5.6% | ||
| The mortality table is based on the census taken in | 2010 | ||
| B. Present Value of Remainder Interest - One Life Deferred | ||
|---|---|---|
| 1. | Age nearest to date of transfer | 68 |
| 2. | Age nearest to annuity starting date | 75 |
| 3. | Value of Dx from IRS Pub. 1457, Table H based on | |
| (a) Line 1 age | 1161.861 | |
| (b) Line 2 age | 1985.556 | |
| 4. | Line 3(a) divided by Line 3(b) | 0.585157 |
| 5. | Unadjusted value of $1 of single life annuity from IRS Pub. 1457, Table S based on Line 1 age | 7.9861 |
| 6. | Adjustment factor based on payment frequency from Pub 1457, Table K | 1.0208 |
| 7. | Adjusted value of $1 of single life annuity (Line 5 * Line 6) | 8.1522 |
| 8. | Value of $1 of deferred single life annuity (Line 4 * Line 7) | 4.7703 |
| 9. | Annual annuity rate for deferred annuity | 7% |
| 10. | Deferred annuity interest adjustment factor | 1.399029 |
| 11. | Deferred annuity rate (Line 9 * Line 10) | 9.8% |
| 12. | Net fair market value paid for annuity | $100,000.00 |
| 13. | Annuity amount payable on an annual basis (line 11 * Line 12) | $9,800.00 |
| 14. | Present value of annuity (Line 8 * Line 13) | $46,748.94 |
| 15. | Minimum value of annuity (lesser of Line 12 and Line 14) | $46,748.94 |
| 16. | Present value of remainder interest (Charitable Deduction) | $53,251.06 |
Depending on the type of asset you contribute, a portion of your payment may be taxable to you as a combination of ordinary income, long-term capital gain, and a tax-free return of principal. This report has been calculated assuming a contribution of cash. Each of your next 12.4 years payments of $9,800.00 will contain $3,770.80 of tax-free income and $6,029.92 of ordinary income. All income will be ordinary after 12.4 years.
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