Prepared for: Donor name
| A. Input Assumptions | |||
|---|---|---|---|
| Date of transfer | April 22, 2026 | ||
| Fair market value of property transferred | $1,000,000.00 | ||
| Nearest age on the date of the gift for Beneficiary 1 is | 94 | ||
| Annual annuity rate | 6% | ||
| Payment frequency | Quarterly | ||
| Is payment at beginning or end of payment period | End | ||
| IRC Sec. 7520(a) election to use 3/2026 discount rate of | 4.8% | ||
| The mortality table is based on the census taken in | 2010 | ||
| 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) | 2.9206 |
| 5. | Line 3 annuity amount times Line 4 factor | $175,236.00 |
| 6. | Adjustment factor for payment frequency (from Table K) | 1.0178 |
| 7. | Adjusted annuity value (Line 5 * Line 6) | $178,355.20 |
| 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) | $178,355.20 |
| 10. | Minimum value of annuity interest (lesser of Line 1 and Line 9) | $178,355.20 |
| 11. | Present value of remainder interest = the tax deduction (Line 1 - Line 10) | $821,644.80 |
| 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 | 82.16% | |
| Present value of remainder interest = the tax deduction (Line 1 * Line 2) | $821,644.80 | |
| 10% remainder interest test | Passed | |
| Probability that the annuitant will survive to the exhaustion of the fund | 0% | |
| 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.
