An Overview

The value of an annuity, a unitrust interest, an estate (income or use interest) for life or term of years, or a remainder or a reversionary interest is valued for most income, estate, gift, and generation-skipping transfer tax purposes using the following valuation tables and the current IRC Section 7520 interest rate for the month in which the valuation date occurs. If a charitable deduction is involved, the taxpayer can use the interest rate for either of the two preceding months or the current month.

Selected single life and term certain annuity tables and single life and term certain unitrust remainder tables are provided here. For purposes of these tables, round the age of any person whose life is used to measure an interest to the age of such person on his birthday nearest the valuation date.

Both the single life and term certain annuity tables provide factors for annuity interests which can be converted into an income factor or a remainder factor following an income interest. An annuity factor is converted into an income factor by multiplying the annuity factor by the interest rate. An income factor is converted into a remainder factor following an income interest by subtracting the income factor from 1.