Prepared for: Donor name

A. Input Assumptions | |
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Date of transfer | July 9, 2020 |

Fair market value of property transferred | $1,000,000.00 |

The term income interest of the trust will last | 20 years |

Unitrust payout rate | 5% |

Payment frequency | Quarterly |

Is payment at beginning or end of payment period | End |

Number of months between the valuation date and the first payout rate for the first full taxable year of the trust | 3 |

This table uses a hypothetical future discount rate of | 1.8% |

The mortality table is based on the census taken in | 2000 |

B. Calculation of Present Value of Remainder Interest Factor: (Interpolation of Table U Factor for Term Certain) | ||
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1. | Factor for Table F based on the payment period, the number of months between the valuation date and the first payment date, and the discount rate | 0.988924 |

2. | Adjusted payout rate (Table F factor * payout rate) | 4.94% |

3. | The nearest usable payout rate less than the Line 2 rate | 4.8% |

4. | Line 2 minus Line 3 | 0.14% |

5. | Line 4 divided by .20 percent | 0.7231 |

6. | Factor from Table U at the Line 3 rate | 0.373886 |

7. | Factor from Table U at the rate .20 percent higher than the Line 3 rate | 0.358486 |

8. | Line 6 minus Line 7 | 0.0154 |

9. | Line 8 times Line 5 (Interpolation adjustment) | 0.011136 |

10. | Present value of remainder interest factor (Line 6 - Line 9) | 0.36275 |

C. Calculation of Income Tax Deduction Allowed for Grantor Trust | ||
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1. | Fair market value of property transferred | $1,000,000.00 |

2. | Present value of remainder interest in unitrust factor (from Section B) | 0.36275 |

3. | Present value of remainder interest - non-deductible remainder (Line 1 * Line 2) | $362,750.00 |

4. | Present value of unitrust interest (Line 1 - Line 3) | $637,250.00 |

5. | Percent of property that will revert to grantor (Line 3 / Line 1) | 36.28% |

6. | Is income tax deduction allowed? (Line 5 > 5%) | Yes |

7. | Income tax deduction | $637,250.00 |

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.