Prepared for: Donor name
| A. Input Assumptions | |
|---|---|
| Date of transfer | October 15, 2008 |
| Fair market value of property transferred | $1,000,000.00 |
| The term income interest of the trust will last | 20 years |
| Payout rate | 5% |
| Payment frequency | Quarterly |
| Date of first payment: | December 31, 2008 |
| The number of months from the valuation date and the first payout for the first full taxable year of the trust | 3 |
| IRC Sec. 7520(a) election to use 9/2008 discount rate of | 4.2% |
| The mortality table is based on the census taken in | 1990 |
| B. Calculation of Present Value of Remainder Interest Factor: (Interpolation of Table D Factor for Term Certain) | ||
|---|---|---|
| 1. | Factor from Table F based on the payment period, the number of months between the valuation date and the first payment date, and the discount rate | 0.974679 |
| 2. | Adjusted payout rate (Table F factor * payout rate) | 4.87% |
| 3. | The nearest usable payout rate less than the Line 2 rate | 4.8% |
| 4. | Line 2 minus line 3 | 0.07% |
| 5. | Line 4 divided by .20 percent | 0.366975 |
| 6. | Factor from Table D at the Line 3 rate | 0.373886 |
| 7. | Factor from Table D 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) | 0.005651 |
| 10. | Present value of remainder interest factor (Line 6 - Line 9) | 0.368235 |
| C. Calculation of Tax Deduction for Charitable Remainder Unitrust | |
|---|---|
| Fair market value of property transferred | $1,000,000.00 |
| Present value of remainder interest in unitrust factor as a percent | 36.82% |
| Present value of remainder interest = the tax deduction (Line 1 * Line 2) | $368,235.00 |
| 10% remainder interest test | Passed |
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