Prepared for: Donor name
A. Input Assumptions | |
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Date of transfer | November 11, 2024 |
Fair market value of property transferred | $1,000,000.00 |
The term income interest of the trust will last | 20 years |
Unitrust payout rate | 5% |
Payment frequency | Quarterly |
Is payment at beginning or end of payment period | End |
Number of months between the valuation date and the first payout rate for the first full taxable year of the trust | 3 |
The discount rate (effective 11/2024) is | 4.4% |
The mortality table is based on the census taken in | 2010 |
B. Calculation of Present Value of Remainder Interest Factor: (Interpolation of Table U Factor for Term Certain) | ||
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1. | Factor for Table F based on the payment period, the number of months between the valuation date and the first payment date, and the discount rate | 0.973517 |
2. | Adjusted payout rate (Table F factor * payout rate) | 4.87% |
3. | The nearest usable payout rate less than the Line 2 rate | 4.8% |
4. | Line 2 minus Line 3 | 0.07% |
5. | Line 4 divided by .20 percent | 0.337925 |
6. | Factor from Table U at the Line 3 rate | 0.373886 |
7. | Factor from Table U at the rate .20 percent higher than the Line 3 rate | 0.358486 |
8. | Line 6 minus Line 7 | 0.0154 |
9. | Line 8 times Line 5 (Interpolation adjustment) | 0.005204 |
10. | Present value of remainder interest factor (Line 6 - Line 9) | 0.368682 |
C. Calculation of Gift or Estate Tax Deduction for Non-Grantor Trust | ||
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1. | Fair market value of property transferred | $1,000,000.00 |
2. | Present value of remainder interest in unitrust factor (from Section B) | 0.368682 |
3. | Present value of remainder interest - remainder subject to gift or estate tax (Line 1 * Line 2) | $368,682.00 |
4. | Line 2 minus Line 3 (Gift or Estate Tax deduction) | $631,318.00 |
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.