Prepared for: Donor name
A. Input Assumptions | |
---|---|
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 |
Annual annuity rate | 5% |
Payment frequency | Quarterly |
Is payment at beginning or end of payment period | End |
The discount rate (effective 11/2024) is | 4.4% |
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) | 13.1214 |
5. | Line 3 annuity amount times Line 4 factor | $656,070.00 |
6. | Adjustment factor for payment frequency (from Table K) | 1.0164 |
7. | Present value of annuity interest (Line 5 * Line 6) | $666,829.55 |
8. | Value of annuity interest (lesser of Line 1 and Line 7). The gift or estate tax deduction | $666,829.55 |
9. | Present value of remainder interest = the non deductible remainder (Line 1 - Line 10) | $333,170.45 |
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.