Charitable Remainder Annuity Trust - Term Certain

Prepared for: Donor name

A. Input Assumptions
Date of transfer March 24, 2023
Fair market value of property transferred $100,000.00
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
IRC Sec. 7520(a) election to use 2/2023 discount rate of 4.6%
The mortality table is based on the census taken in 2000
B. Calculation of Present Value of Remainder Interest (for Term Certain)
1. Fair market value of property transferred $100,000.00
2. Annual annuity rate 5%
3. Annuity amount payable on an annual basis $5,000.00
4. Factor for present worth of an annuity (based on Table S) 12.896
5. Line 3 annuity amount times Line 4 factor $64,480.00
6. Adjustment factor for payment frequency (from Table K) 1.0171
7. Adjusted annuity value (Line 5 * Line 6) $65,582.61
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) $65,582.61
10. Minimum value of annuity interest (lesser of Line 1 and Line 9) $65,582.61
11. Present value of remainder interest = the tax deduction (Line 1 - Line 10) $34,417.39
C. Calculation of Tax Deduction for Charitable Remainder Annuity Trusts
Fair market value of property transferred $100,000.00
Present value of remainder interest in annuity trust factor as a percent 34.42%
Present value of remainder interest = the tax deduction (Line 1 * Line 2) $34,417.39
10% remainder interest test Passed
5% probability test N/A

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.