EXHIBIT 25-4 Discount Factors for Estimating the Value of Remainders Table S-Based on Life Table 2010CM Life Interest at 5.8 Percent Life Age Annuity Estate Remainder Age Annuity Estate Remainder 0 16.7839 0.97347 0.02653 55 12.7003 0.73662 0.26338 1 16.8647 0.97815 0.02185 56 12.5171 0.72599 0.27401 2 16.8500 0.9773 0.0227 57 12.328 0.71502 0.28498 3 16.8321 0.97626 0.02374 58 12.133 0.70371 0.29629 4 16.8120 0.9751 0.0249 59 11.9319 0.69205 0.30795 35 15.3495 0.89027 0.10973 90 3.6558 0.21204 0.78796 36 15.2594 0.88504 0.11496 91 3.4328 0.19911 0.80089 37 15.1649 0.87957 0.12043 92 3.222 0.18687 0.81313 38 15.0661 0.87383 0.12617 93 3.0233 0.17535 0.82465 39 14.9628 0.86784 0.13216 Source: Reg. 20.2031-7(d)(7) Table S. 94 2.8369 0.16454 0.83546 Jack and Liz live in a community-property state and their vacation home is community property. This year they transferred the vacation home to an irrevocable trust that provides their son, Tom, a life estate in the home and the remainder to their daughter, Laura. Under the terms of the trust, Tom has the right to use the vacation home for the duration of his life, and Laura will automatically own the property after Tom's death. At the time of the gift, the home was valued at $500,000, Tom was 37 years old, and the $7520 rate was 5.8 percent. Use discount tables Exhibit 25-4. Required: a. What is the amount, if any, of the taxable gifts? b. Would your answer be different if the home was not community property and Jack and Liz elected to gift-split? Complete this question by entering your answers in the tabs below. Required A Required B What is the amount, if any, of the taxable gifts? Taxable gift to Laura by each Taxable gift to Tom by each Amount
EXHIBIT 25-4 Discount Factors for Estimating the Value of Remainders Table S-Based on Life Table 2010CM Life Interest at 5.8 Percent Life Age Annuity Estate Remainder Age Annuity Estate Remainder 0 16.7839 0.97347 0.02653 55 12.7003 0.73662 0.26338 1 16.8647 0.97815 0.02185 56 12.5171 0.72599 0.27401 2 16.8500 0.9773 0.0227 57 12.328 0.71502 0.28498 3 16.8321 0.97626 0.02374 58 12.133 0.70371 0.29629 4 16.8120 0.9751 0.0249 59 11.9319 0.69205 0.30795 35 15.3495 0.89027 0.10973 90 3.6558 0.21204 0.78796 36 15.2594 0.88504 0.11496 91 3.4328 0.19911 0.80089 37 15.1649 0.87957 0.12043 92 3.222 0.18687 0.81313 38 15.0661 0.87383 0.12617 93 3.0233 0.17535 0.82465 39 14.9628 0.86784 0.13216 Source: Reg. 20.2031-7(d)(7) Table S. 94 2.8369 0.16454 0.83546 Jack and Liz live in a community-property state and their vacation home is community property. This year they transferred the vacation home to an irrevocable trust that provides their son, Tom, a life estate in the home and the remainder to their daughter, Laura. Under the terms of the trust, Tom has the right to use the vacation home for the duration of his life, and Laura will automatically own the property after Tom's death. At the time of the gift, the home was valued at $500,000, Tom was 37 years old, and the $7520 rate was 5.8 percent. Use discount tables Exhibit 25-4. Required: a. What is the amount, if any, of the taxable gifts? b. Would your answer be different if the home was not community property and Jack and Liz elected to gift-split? Complete this question by entering your answers in the tabs below. Required A Required B What is the amount, if any, of the taxable gifts? Taxable gift to Laura by each Taxable gift to Tom by each Amount
Chapter27: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 43P
Related questions
Question
I have already answered B and the answer was "No".
Transcribed Image Text:EXHIBIT 25-4 Discount Factors for Estimating the Value of Remainders
Table S-Based on Life Table 2010CM
Life
Interest at 5.8 Percent
Life
Age Annuity Estate Remainder Age Annuity Estate Remainder
0
16.7839 0.97347 0.02653 55 12.7003 0.73662 0.26338
1 16.8647 0.97815
0.02185
56
12.5171 0.72599 0.27401
2
16.8500 0.9773 0.0227
57
12.328 0.71502 0.28498
3
16.8321 0.97626 0.02374 58 12.133 0.70371 0.29629
4
16.8120 0.9751 0.0249
59 11.9319 0.69205 0.30795
35 15.3495 0.89027
0.10973
90 3.6558 0.21204 0.78796
36 15.2594 0.88504 0.11496 91 3.4328 0.19911 0.80089
37 15.1649 0.87957
0.12043
92 3.222 0.18687
0.81313
38 15.0661 0.87383 0.12617
93 3.0233 0.17535 0.82465
39 14.9628 0.86784 0.13216
Source: Reg. 20.2031-7(d)(7) Table S.
94 2.8369 0.16454 0.83546
Transcribed Image Text:Jack and Liz live in a community-property state and their vacation home is community property. This year they transferred the vacation
home to an irrevocable trust that provides their son, Tom, a life estate in the home and the remainder to their daughter, Laura. Under
the terms of the trust, Tom has the right to use the vacation home for the duration of his life, and Laura will automatically own the
property after Tom's death. At the time of the gift, the home was valued at $500,000, Tom was 37 years old, and the $7520 rate was
5.8 percent. Use discount tables Exhibit 25-4.
Required:
a. What is the amount, if any, of the taxable gifts?
b. Would your answer be different if the home was not community property and Jack and Liz elected to gift-split?
Complete this question by entering your answers in the tabs below.
Required A
Required B
What is the amount, if any, of the taxable gifts?
Taxable gift to Laura by each
Taxable gift to Tom by each
Amount
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