Grantor Charitable Lead Annuity Trust - Term Certain

Prepared for: Donor name

A. Input Assumptions
Date of transfer May 31, 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
The discount rate (effective 5/2023) is 4.4%
The mortality table is based on the census taken in 2000
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) 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) $666,829.55
9. Present value of remainder interest = non deductible remainder (Line 1 - Line 8) $333,170.45
10. Percent of property that will revert to the grantor 33.32%
11. Is income tax deduction allowed? (Is Line 10 > 15%) Yes
12. Income tax deduction $666,829.55

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.