Charitable Remainder Annuity Trust - Term Certain

Prepared for: Donor name

A. Input Assumptions
Date of transfer February 4, 2023
Fair market value of property transferred $100,000.00
The term income interest of the trust will last 20 years
Annual annuity rate 5%
Payment frequency Quarterly
Is payment at beginning or end of payment period End
IRC Sec. 7520(a) election to use 12/2022 discount rate of 5.2%
The mortality table is based on the census taken in 2000
B. Calculation of Present Value of Remainder Interest (for Term Certain)
1. Fair market value of property transferred $100,000.00
2. Annual annuity rate 5%
3. Annuity amount payable on an annual basis $5,000.00
4. Factor for present worth of an annuity (based on Table S) 12.2536
5. Line 3 annuity amount times Line 4 factor $61,268.00
6. Adjustment factor for payment frequency (from Table K) 1.0193
7. Adjusted annuity value (Line 5 * Line 6) $62,450.47
8. Amount of first annuity payment if payment is made at beginning of period
for a non-term annuity trust (otherwise 0)

$0.00
9. Present value of annuity interest (Line 7 + Line 8) $62,450.47
10. Minimum value of annuity interest (lesser of Line 1 and Line 9) $62,450.47
11. Present value of remainder interest = the tax deduction (Line 1 - Line 10) $37,549.53
C. Calculation of Tax Deduction for Charitable Remainder Annuity Trusts
Fair market value of property transferred $100,000.00
Present value of remainder interest in annuity trust factor as a percent 37.55%
Present value of remainder interest = the tax deduction (Line 1 * Line 2) $37,549.53
10% remainder interest test Passed
5% probability test N/A

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