Grantor Charitable Lead Annuity Trust - Term Certain

Prepared for: Donor name

A. Input Assumptions
Date of transfer December 7, 2023
Fair market value of property transferred $1,000,000.00
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 10/2023 discount rate of 5.4%
The mortality table is based on the census taken in 2010
B. Calculation of Income Tax Deduction for Grantor Trust
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 B) 12.0502
5. Line 3 annuity amount times Line 4 factor $602,510.00
6. Adjustment factor for payment frequency (from Table K) 1.02
7. Present value of annuity interest (Line 5 * Line 6) $614,560.20
8. Value of annuity interest (lesser of Line 1 and Line 7) $614,560.20
9. Present value of remainder interest = non deductible remainder (Line 1 - Line 8) $385,439.80
10. Percent of property that will revert to the grantor 38.54%
11. Is income tax deduction allowed? (Is Line 10 > 15%) Yes
12. Income tax deduction $614,560.20

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