Prepared for: Donor name
A. Input Assumptions | |
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Date of transfer | December 7, 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 |
The discount rate (effective 12/2023) is | 5.8% |
The mortality table is based on the census taken in | 2010 |
B. Calculation of Present Value of Remainder Interest (for Term Certain) | ||
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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) | 11.6585 |
5. | Line 3 annuity amount times Line 4 factor | $58,292.50 |
6. | Adjustment factor for payment frequency (from Table K) | 1.0215 |
7. | Adjusted annuity value (Line 5 * Line 6) | $59,545.79 |
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) | $59,545.79 |
10. | Minimum value of annuity interest (lesser of Line 1 and Line 9) | $59,545.79 |
11. | Present value of remainder interest = the tax deduction (Line 1 - Line 10) | $40,454.21 |
C. Calculation of Tax Deduction for Charitable Remainder Annuity Trusts | |
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Fair market value of property transferred | $100,000.00 |
Present value of remainder interest in annuity trust factor as a percent | 40.45% |
Present value of remainder interest = the tax deduction (Line 1 * Line 2) | $40,454.21 |
10% remainder interest test | Passed |
5% probability test | N/A |
My disclaimer.