Prepared for: Donor name
| A. Input Assumptions | |
|---|---|
| Date of transfer | September 30, 2023 |
| Fair market value of property transferred | $1,000,000.00 |
| Nearest age on the date of the gift for Beneficiary 1 is | 91 |
| Nearest age on the date of the gift for Beneficiary 2 is | 87 |
| Annual annuity rate | 5% |
| Payment frequency | Quarterly |
| Is payment at beginning or end of payment period | End |
| The discount rate (effective 9/2023) is | 5% |
| The mortality table is based on the census taken in | 2010 |
| B. Calculation of Present Value of Remainder Interest (for Number of Lives) | ||
|---|---|---|
| 1. | Fair market value of property transferred | $1,000,000.00 |
| 2. | Annual annuity rate | 5% |
| 3. | Annuity amount payable on an annual basis | $50,000.00 |
| 4. | Factor for present worth of an annuity (based on Table S) | 5.5686 |
| 5. | Line 3 annuity amount times Line 4 factor | $278,430.00 |
| 6. | Adjustment factor for payment frequency (from Table K) | 1.0186 |
| 7. | Adjusted annuity value (Line 5 * Line 6) | $283,608.80 |
| 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) | $283,608.80 |
| 10. | Minimum value of annuity interest (lesser of Line 1 and Line 9) | $283,608.80 |
| 11. | Present value of remainder interest = the tax deduction (Line 1 - Line 10) | $716,391.20 |
| C. Calculation of Tax Deduction for Charitable Remainder Annuity Trusts | |
|---|---|
| Fair market value of property transferred | $1,000,000.00 |
| Present value of remainder interest in annuity trust factor as a percent | 71.64% |
| Present value of remainder interest = the tax deduction (Line 1 * Line 2) | $716,391.20 |
| 10% remainder interest test | Passed |
| Probability that the annuitant will survive to the exhaustion of the fund | 0% |
| 5% probability test | Passed |
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