Charitable Remainder Annuity Trust - One Life

Prepared for: Donor name

A. Input Assumptions
Date of transfer July 6, 2015
Fair market value of property transferred $1,000,000.00
Nearest age on the date of the gift for Beneficiary 1 is 83
Annual annuity rate 6%
Payment frequency Quarterly
Is payment at beginning or end of payment period End
The discount rate (effective 7/2015) is 2.2%
The mortality table is based on the census taken in 2000
B. Calculation of Present Value of Remainder Interest (for Number of Lives)
1. Fair market value of property transferred $1,000,000.00
2. Annual annuity rate 6%
3. Annuity amount payable on an annual basis $60,000.00
4. Factor for present worth of an annuity (based on Table S) 6.2414
5. Line 3 annuity amount times Line 4 factor $374,484.00
6. Adjustment factor for payment frequency (from Table K) 1.0082
7. Adjusted annuity value (Line 5 * Line 6) $377,554.77
8. Amount of first annuity payment if payment is made at beginning of period for a non-term annuity trust (otherwise 0)
$0.00
9. Present value of annuity interest (Line 7 + Line 8) $377,554.77
10. Minimum value of annuity interest (lesser of Line 1 and Line 9) $377,554.77
11. Present value of remainder interest = the tax deduction (Line 1 - Line 10) $622,445.23
C. Calculation of Tax Deduction for Charitable Remainder Annuity Trusts
Fair market value of property transferred $1,000,000.00
Present value of remainder interest in annuity trust factor as a percent 62.24%
Present value of remainder interest = the tax deduction (Line 1 * Line 2) $622,445.23
10% remainder interest test Passed
Probability that the annuitant will survive to the exhaustion of the fund 0.6%
5% probability test Passed

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.

 

Copyright (c) 2014 The Sharpe Group, Inc.