Prepared for: Donor name
| A. Input Assumptions | |
|---|---|
| Date of transfer | September 22, 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 7/2023 discount rate of | 4.6% |
| The mortality table is based on the census taken in | 2010 |
| B. Calculation of Gift and Estate Tax Deduction for Non-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) | 12.896 |
| 5. | Line 3 annuity amount times Line 4 factor | $644,800.00 |
| 6. | Adjustment factor for payment frequency (from Table K) | 1.0171 |
| 7. | Present value of annuity interest (Line 5 * Line 6) | $655,826.08 |
| 8. | Value of annuity interest (lesser of Line 1 and Line 7). The gift or estate tax deduction | $655,826.08 |
| 9. | Present value of remainder interest = the non deductible remainder (Line 1 - Line 10) | $344,173.92 |
NOTE: This calculation is provided for educational purposes only. The type of assets transferred, the actual date of the gift, and other factors may have a material effect on the amount or use of your deduction. You are advised to seek the advice of your tax advisors before implementing a gift of this type.
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