Charitable Remainder Annuity Trust - One Life

Book page posted in on 7 September 2010
audience: | last updated: 16 April 2014

Prepared for: enter donor name

A. Input Assumptions
Date of transfer May 30, 2016
Fair market value of property transferred $1,000,000.00
Nearest age on the date of the gift for Beneficiary 1 is 65
Annual annuity rate 5%
Payment frequency Quarterly
Is payment at beginning or end of payment period End
The discount rate (effective 5/2016) is 1.8%
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 5%
3. Annuity amount payable on an annual basis $50,000.00
4. Factor for present worth of an annuity (based on Table S) 14.5917
5. Line 3 annuity amount times Line 4 factor $729,585.00
6. Adjustment factor for payment frequency (from Table K) 1.0067
7. Adjusted annuity value (Line 5 * Line 6) $734,473.22
8. Amount of first annuity payment if payment is made at beginning of period for a non-term annuity trust (otherwise 0)
9. Present value of annuity interest (Line 7 + Line 8) $734,473.22
10. Minimum value of annuity interest (lesser of Line 1 and Line 9) $734,473.22
11. Present value of remainder interest = the tax deduction (Line 1 - Line 10) $265,526.78
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 26.55%
Present value of remainder interest = the tax deduction (Line 1 * Line 2) $265,526.78
10% remainder interest test Passed
Probability that the annuitant will survive to the exhaustion of the fund 22.47%
5% probability test Failed

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.

Calculations provided by Planned Giving Design Center, LLC, Copyright 2014 PhilanthroTec, Inc.

Group details




This group offers an RSS feed. Or subscribe to these personalized, sitewide feeds:
7520 Rates: May 1.8% April 1.8% March 1.8%

Already a member?

Learn, Share, Gain Insight, Connect, Advance

Join Today For Free!

Join the PGDC community and…

  • Learn through thousands of pages of content, newsletters and forums
  • Share by commenting on and rating content, answering questions in the forums, and writing
  • Gain insight into other disciplines in the field
  • Connect – Interact – Grow
  • Opt-in to Include your profile in our searchable national directory. By default, your identity is protected

…Market yourself to a growing industry