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
1 post / 0 new
Last post
Joined: 09/28/2009
Points: 30
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.

Add comment

Login or register to post comments


7520 Rates: June 3.4% May 3.2% April 3.2%

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