How do interest rates affect life estate calc?

How do interest rates affect life estate calc?

Forum topic posted in Forum on 28 September 2009| comments
audience: | last updated: 28 September 2009
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In looking at IRS Table 6, a life estate of an individual age 60 uses a single life factor of .64967 at 6% interest and a .47413 factor for the same life estate at 3.4%. What am I missing??? This implies that a lower interest rate yields a lower life estate value. Any help to clear up my obvious misunderstanding is appreciated.

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7520 Rates: October 2.2% September 2.4% August 2.4%

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