Non-Grantor Charitable Lead Annuity Trust - Term Certain

Prepared for: Donor name

A. Input Assumptions
Date of transfer November 29, 2021
Fair market value of property transferred $1,000,000.00
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 10/2021 discount rate of 1%
The mortality table is based on the census taken in 2000
B. Calculation of Gift and Estate Tax Deduction for Non-Grantor Trust
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 B) 18.0456
5. Line 3 annuity amount times Line 4 factor $902,280.00
6. Adjustment factor for payment frequency (from Table K) 1.0037
7. Present value of annuity interest (Line 5 * Line 6) $905,618.44
8. Value of annuity interest (lesser of Line 1 and Line 7). The gift or estate tax deduction $905,618.44
9. Present value of remainder interest = the non deductible remainder (Line 1 - Line 10) $94,381.56

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.