Prepared for: Donor name
A. Input Assumptions | |
---|---|
Date of transfer | November 7, 2024 |
Fair market value of property transferred | $1,000,000.00 |
Nearest age on the date of the gift for Beneficiary 1 is | 86 |
Payout rate | 5% |
Payment frequency | Quarterly |
Date of first payment: | December 31, 2024 |
The number of months from the valuation date and the first payout for the first full taxable year of the trust | 3 |
IRC Sec. 7520(a) election to use 9/2024 discount rate of | 4.8% |
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 Number of Lives) | ||
---|---|---|
1. | Factor from Table F based on the payment period, the number of months between the valuation date and the first payment date, and the discount rate | 0.971206 |
2. | Adjusted payout rate (Table F factor * payout rate) | 4.86% |
3. | The nearest usable payout rate less than the Line 2 rate | 4.8% |
4. | Line 2 minus line 3 | 0.06% |
5. | Line 4 divided by .20 percent | 0.28015 |
6. | Factor from Table U at the Line 3 rate | 0.75743 |
7. | Factor from Table U at the rate .20 percent higher than the line 3 rate | 0.74914 |
8. | Line 6 minus Line 7 | 0.00829 |
9. | Line 8 times Line 5 (Interpolation adjustment) | 0.00232 |
10. | Present value of remainder interest factor (Line 6 - Line 9) | 0.75511 |
C. Calculation of Tax Deduction for Charitable Remainder Unitrust | |
---|---|
Fair market value of property transferred | $1,000,000.00 |
Present value of remainder interest in unitrust factor as a percent | 75.51% |
Present value of remainder interest = the tax deduction (Line 1 * Line 2) | $755,110.00 |
10% remainder interest 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.