(a) If an amount is deemed under section 666 to be an amount paid, credited, or required to be distributed on the last day of a preceding taxable year, the trust is not allowed a refund or credit of the amount of ``taxes imposed on the trust'', as defined in Sec. 1.665(d)-1, which would not have been payable for the preceding taxable year had the trust in fact made such distribution on the last day of such year. However, such taxes are allowed as a credit under section 668(b) against the tax of the beneficiaries who are treated as having received the distributions in the preceding taxable year. The amount of taxes which may not be refunded or credited to the trust under this paragraph and which are allowed as a credit under section 668(b) against the tax of the beneficiaries, is an amount equal to the excess of:
(1) The taxes imposed on the trust (as defined in section 665(d) and Sec. 1.655(d)-1) for any preceding taxable year (computed without regard to the accumulation distribution for the taxable year) over
(2) The amount of taxes for such preceding taxable year which would be imposed on the undistributed portion of distributable net income of the trust for such preceding taxable year after the application of subpart D (section 665 and following), part I, subchapter J, chapter 1 of the Code, on account of the accumulation distribution determined for the taxable year. It should be noted that the credit under section 667 is computed by the use of a different ratio from that used for computing the amount of taxes deemed distributed under section 666(c).
(b) Paragraph (a) of this section may be illustrated by the following examples:
Example 1. In 1954, a trust of which A is the sole beneficiary has taxable income of $20,000 (including capital gains of $5,100 allocable to corpus less a personal exemption of $100), on which a tax of $7,260 is paid. The undistributed portion of distributable net income is $15,000, to which $6,160 of the tax is allocable under section 665. The undistributed net income is therefore $8,840 ($15,000 minus $6,160). In 1955, the trust makes an accumulation distribution of $8,840. Under section 666(b), the total taxes for 1954 attributable to the undistributed net income are deemed distributed, so $15,000 is deemed distributed. The amount of the tax which may not be refunded to the trust under section 667 and the credit to which A is entitled under section 668(b) is the excess of $6,160 over zero, since after the distribution and the application of subpart D there is no remaining undistributed portion of distributable net income for 1954.
Example 2. The same trust as in example 1 of this paragraph distributes $5,000 in 1955, rather than $8,840. The amount of the tax which may not be refunded to the trust but which is available to A as a credit is $4,044, computed as follows: Accumulation distribution in 1955............................ $5,000Taxes deemed distributed under section 666(c) (5,000/ 3,484
8,840x$6,160)...............................................
------------
Total amount deemed distributed out of the undistributed 8,484
portion of distributable net income.....................
============Tax attributable to the undistributed portion of 6,160
distributable net income ($15,000) before 1955 distribution
(see example 1 of this paragraph)...........................Tax on $11,516 (taxable income of $20,000 minus $3,216
$8,484, amount deemed distributed)...............Tax on $5,000 (capital gains of $5,100, less 1,100
personal exemption of $100, allocable to corpus).
-----------Tax attributable to undistributed portion of distributable 2,116
net income after 1955 distribution..........................
------------
Refund disallowed to the trust and credit available to A 4,044
in 1955.................................................
[T.D. 6500, 25 FR 11814, Nov. 26, 1960, as amended by T.D. 6989, 34 FR 741, Jan. 17, 1969] Sec. 1.667(a)-1A Denial of refund to trusts.
If an amount is deemed under section 666 or 669 to be an amount paid, credited, or required to be distributed on the last day of a preceding taxable year, the trust is not allowed a refund or credit of the amount of ``taxes imposed on the trust'', as defined in Sec. 1.665(d)-1A. However, such taxes imposed on the trust are allowed as a credit under section 667(b) against the tax of certain beneficiaries who are treated as having received the distributions in the preceding taxable year. [T.D. 7204, 37 FR 17147, Aug. 25, 1972] Sec. 1.667(b)-1A Authorization of credit to beneficiary for taxesimposed on the trust.
(a) Determination of credit--(1) In general. Section 667(b) allows under certain circumstances a credit (without interest) against the tax imposed by subtitle A of the Code on the beneficiary for the taxable year in which the accumulation distribution is required to be included in income under section 668(a). In the case of an accumulation distribution consisting only of undistributed net income, the amount of such credit is the total of the taxes deemed distributed to such beneficiary under section 666 (b) and (c) as a result of such accumulation distribution for preceding taxable years of the trust on the last day of which such beneficiary was in being, less the amount of such taxes for such preceding taxable years taken into account in reducing the amount of partial tax determined under Sec. 1.668(b)-1A. In the case of an accumulation distribution consisting only of undistributed capital gain, the amount of such credit is the total of the taxes deemed distributed as a result of the accumulation distribution to such beneficiary under section 669 (d) and (e) for preceding taxable years of the trust on the last day of which such beneficiary was in being, less the amount of such taxes for such preceding taxable years taken into account in reducing the amount of partial tax determined under Sec. 1.669(b)-1A. In the case of an accumulation distribution consisting of both undistributed net income and undistributed capital gain, a credit will not be available unless the total taxes deemed distributed to the beneficiary for all preceding taxable years as a result of the accumulation distribution exceeds the beneficiary's partial tax determined under Sec. Sec. 1.668(b)-1A and 1.669(b)-1A without reference to the taxes deemed distributed. A credit is not allowed for any taxes deemed distributed as a result of an accumulation distribution to a beneficiary by reason of sections 666 (b) and (c) or sections 669 (d) and (e) for a preceding taxable year of the trust before the beneficiary was born or created. However, if as a result of an accumulation distribution the total taxes deemed distributed under sections 668(a)(2) and 668(a)(3) in preceding taxable years before the beneficiary was born or created exceed the partial taxes attributable to amounts deemed distributed in such years, such excess may be used to offset any liability for partial taxes attributable to amounts deemed distributed as a result of the same accumulation distribution in preceding taxable years after the beneficiary was born or created.
(1) In general. Section 667(b) allows under certain circumstances a credit (without interest) against the tax imposed by subtitle A of the Code on the beneficiary for the taxable year in which the accumulation distribution is required to be included in income under section 668(a). In the case of an accumulation distribution consisting only of undistributed net income, the amount of such credit is the total of the taxes deemed distributed to such beneficiary under section 666 (b) and (c) as a result of such accumulation distribution for preceding taxable years of the trust on the last day of which such beneficiary was in being, less the amount of such taxes for such preceding taxable years taken into account in reducing the amount of partial tax determined under Sec. 1.668(b)-1A. In the case of an accumulation distribution consisting only of undistributed capital gain, the amount of such credit is the total of the taxes deemed distributed as a result of the accumulation distribution to such beneficiary under section 669 (d) and (e) for preceding taxable years of the trust on the last day of which such beneficiary was in being, less the amount of such taxes for such preceding taxable years taken into account in reducing the amount of partial tax determined under Sec. 1.669(b)-1A. In the case of an accumulation distribution consisting of both undistributed net income and undistributed capital gain, a credit will not be available unless the total taxes deemed distributed to the beneficiary for all preceding taxable years as a result of the accumulation distribution exceeds the beneficiary's partial tax determined under Sec. Sec. 1.668(b)-1A and 1.669(b)-1A without reference to the taxes deemed distributed. A credit is not allowed for any taxes deemed distributed as a result of an accumulation distribution to a beneficiary by reason of sections 666 (b) and (c) or sections 669 (d) and (e) for a preceding taxable year of the trust before the beneficiary was born or created. However, if as a result of an accumulation distribution the total taxes deemed distributed under sections 668(a)(2) and 668(a)(3) in preceding taxable years before the beneficiary was born or created exceed the partial taxes attributable to amounts deemed distributed in such years, such excess may be used to offset any liability for partial taxes attributable to amounts deemed distributed as a result of the same accumulation distribution in preceding taxable years after the beneficiary was born or created.
(2) Exact method. In the case of the tax computed under the exact method provided in Sec. Sec. 1.668(b)-1A(b) and 1.669(b)-1A(b), the credit allowed by this section is computed as follows:
(i) Compute the total taxes deemed distributed under Sec. Sec. 1.666(b)-1A and 1.666(c)-1A or Sec. Sec. 1.669(d)-1A and 1.669(e)-1A, whichever are appropriate, for the preceding taxable years of the trust on the last day of which the beneficiary was in being.
(ii) Compute the total of the amounts of tax determined under Sec. 1.668(b)-1A(b)(1) or Sec. 1.669(b)-1A(b) (1), whichever is appropriate, for the prior taxable years of the beneficiary in which he was in being. If the amount determined under subdivision (i) of this subparagraph does not exceed the amount determined under subdivision (ii) of this subparagraph, no credit is allowable. If the amount determined under subdivision (i) of this subparagraph exceeds the amount determined under subdivision (ii) of this subparagraph, the credit allowable is the lesser of the amount of such excess or the amount of taxes deemed distributed to the beneficiary for all preceding taxable years to the extent that such taxes are not used in Sec. 1.668(b)-1A(b)(2) or Sec. 1.669(b)-1A(b)(2) in determining the beneficiary's partial tax under section 668(a)(2) or 668(a)(3). The application of this subparagraph may be illustrated by the following example:
Example. An accumulation distribution made in 1975 is deemed distribution in 1973 and 1974, years in which the beneficiary was in being. The taxes deemed distributed in such years are $4,000 and $2,000, respectively, totaling $6,000. The amounts of tax computed under Sec. 1.668(b)-1A(b)(1) attributable to the amounts thrown back are $3,000 and $2,000, respectively, totaling $5,000. The credit allowable under this subparagraph is therefore $1,000 ($6,000 less $5,000).
(3) Short-cut method. In the case of the tax computed under the short-cut method provided in Sec. 1.668(b)-1A(c) or Sec. 1.669(b)-1A(c), the credit allowed by this section is computed as follows:
(i) Compute the total taxes deemed distributed in all preceding taxable years of the trust under Sec. Sec. 1.666(b)-1A and 1.666(c)-1A or Sec. Sec. 1.669(d)-1A and 1.669(e)-1A, whichever are appropriate.
(ii) Compute the beneficiary's partial tax determined under either Sec. 1.668(b)-1A(c)(1)(v) or Sec. 1.669(b)-1A (c)(1)(v), whichever is appropriate. If the amount determined under subdivision (i) of this subparagraph does not exceed the amount determined under subdivision (ii) of this subparagraph, no credit is allowable. If the amount determined under subdivision (i) of this subparagraph exceeds the amount determined under subdivision (ii) of this subparagraph,
(iii) Compute the total taxes deemed distributed under Sec. Sec. 1.666(b)-1A and 1.666(c)-1A or Sec. Sec. 1.669(d)-1A and 1.669(e)-1A, which are appropriate, for the preceding taxable years of the trust on the last day of which the beneficiary was in being.
(iv) Multiply the amount by which subdivision (i) of this subparagraph exceeds subdivision (ii) of this subparagraph by a fraction, the numerator of which is the amount determined under subdivision (iii) of this subparagraph and the denominator of which is the amount determined under subdivision (i) of this subparagraph. The result is the allowable credit. The application of this subparagraph may be illustrated by the following example:
Example. An accumulation distribution that consists only of undistributed net income is made in 1975. The taxes deemed distributed in the preceding years under Sec. Sec. 1.666(b)-1A and 1.666(c)-1A are $15,000. The amount determined under Sec. 1.668(b)-1A(c)(1)(v) is $12,000. The beneficiary was in being on the last day of all but one preceding taxable year in which the accumulation distribution was deemed made, and the taxes deemed distributed in those years was $10,000. Therefore, the excess of the subdivision (i) amount over the subdivision (ii) amount is $3,000, and is multiplied by 10,000/15,000, resulting in an answer of $2,000, which is the credit allowable when computed under the short-cut method.
(b) Year of credit. The credit to which a beneficiary is entitled under this section is allowed for the taxable year in which the accumulation distribution (to which the credit relates) is required to be included in the income of the beneficiary under section 668(a). Any excess over the total tax liability of the beneficiary for such year is treated as an overpayment of tax by the beneficiary. See section 6401(b) and the regulations thereunder. [T.D. 7204, 37 FR 17147, Aug. 25, 1972] Sec. 1.668(a)-1A Amounts treated as received in prior taxable years;inclusion in gross income.
(a) Section 668(a) provides that the total of the amounts treated under sections 666 and 669 as having been distributed by the trust on the last day of a preceding taxable year of the trust shall be included in the income of the beneficiary or beneficiaries receiving them. The total of such amounts is includable in the income of each beneficiary to the extent the amounts would have been included under section 662 (a)(2) and (b) as if the total had actually been an amount properly paid by the trust under section 661 (a)(2) on the last day of such preceding taxable year. The total is included in the income of the beneficiary for the taxable year of the beneficiary in which such amounts are in fact paid, credited, or required to be distributed unless the taxable year of the beneficiary differs from the taxable year of the trust (see section 662(c) and the regulations thereunder). The character of the amounts treated as received by a beneficiary in prior taxable years, including taxes deemed distributed, in the hands of the beneficiary is determined by the rules set forth in section 662(b) and the regulations thereunder.
(b) Any deduction allowed to the trust in computing distributable net income for a preceding taxable year (such as depreciation, depletion, etc.) is not deemed allocable to a beneficiary because of amounts included in a beneficiary's gross income under this section since the deduction has already been utilized in reducing the amount included in the beneficiary's income.
(c) For purposes of applying section 668(a)(3), a trust shall be considered to be other than a ``trust which is not required to distribute all of its income currently'' for each taxable year prior to the first taxable year beginning after December 31, 1968, and ending after November 30, 1969, in which income is accumulated. Income will not be deemed to have been accumulated for purposes of applying section 668(a)(3) in a year if the trustee makes a determination, as evidenced by a statement on the return, to distribute all of the trust's income for such year and also makes a good faith determination as to the amount of such income and actually distributed for such year the entire amount so determined. The term ``income,'' as used in the preceding two sentences, is defined in Sec. Sec. 1.643(b)-1 and 1.643(b)-2. Since, under such definitions, certain items may be included in distributable net income but are not, under applicable local law, ``income'' (as, for example, certain extraordinary dividends), a trust that has undistributed net income from such sources might still qualify as a trust that has not accumulated income. Also, for example, if a trust establishes a reserve for depreciation or depletion and applicable local law permits the deduction for such reserve in the computation of ``income,'' amounts so added to the reserve do not constitute an accumulation of income. If a trust has separate shares, and any share accumulates income, all shares of the trust will be considered to have accumulated income for purposes of section 668(a)(3). Amounts retained by a trust or a portion of a trust that is subject to subpart E (sections 671-678) shall not be considered accumulated income.
(d) See section 1302(a)(2)(B) to the effect that amounts included in the income of a beneficiary of a trust under section 668(a) are not eligible for income averaging. [T.D. 7204, 37 FR 17148, Aug. 25, 1972] Sec. 1.668(a)-2A Allocation among beneficiaries; in general.
The portion of the total amount includible in income under Sec. 1.668(a)-1A which is includible in the income of a particular beneficiary is based upon the ratio determined under the second sentence of section 662(a)(2) for the taxable year (and not for the preceding taxable year). This section may be illustrated by the following example:
(a) Under the terms of a trust instrument, the trustee may accumulate the income or make distributions to A and B. The trustee may also invade corpus for the benefit of A and B. The distributable net income of the trust for taxable year 1975 is $10,000. The trust had undistributed net income for taxable year 1973, the first year of the trust, of $5,000, to which a tax of $1,100 was allocable. On May 1, 1975, the trustee distributes $10,000 to A, and on November 29, 1975, he distributes $5,000 to B. Thus, of the total distribution of $15,000, A received two-thirds and B receives one-third.
(b) For the purposes of determining the amounts includible in the beneficiaries' gross income for 1975, the trust is deemed to have made the following distributions: Amount distributed out of 1975 income (distributable net $10,000
income).....................................................Accumulation distribution deemed distributed by the trust on 5,000
the last day of 1973 under section 666(a)...................Taxes imposed on the trust attributable to the undistributed 1,100
net income deemed distributed under section 666(b)..........
(c) A will include in his income for 1975 two-thirds of each item shown in paragraph (b) of this example. Thus, he will include in gross income $6,666.67 (10,000/15,000x $10,000) of the 1975 distributable net income of the trust as provided in section 662(a)(2) (which is not an amount includable in his income under Sec. 1.668(a)-1A(a)). He will include in his income $3,333.33 (10,000/15,000x$5,000) of the accumulation distribution and $733.33 (10,000/15,000x $1,100) of the taxes imposed on the trust, as provided in section 668(a).
(d) B will include in his income for 1975 one-third of each item shown in paragraph (b) of this example, computed in the manner shown in paragraph (c) of this example.
(e) To the extent the total accumulation distribution consists of undistributed net income and undistributed capital gain, A and B shall be treated as receiving a pro rata share of each for the preceding taxable year 1973. [T.D. 7204, 37 FR 17148, Aug. 25, 1972] Sec. 1.668(a)-3A Determination of tax.
In a taxable year in which an amount is included in a beneficiary's income under Sec. 1.668(a)-1A(a), the tax on the beneficiary for such taxable year is determined only as provided in section 668 and consists of the sum of:
(a) A partial tax computed on (1) the beneficiary's taxable income reduced by (2) an amount equal to the total amounts includible in his income under Sec. 1.668(a)-1A(a), at the rate and in the manner as if section 668 had not been enacted,
(b) A partial tax determined as provided in Sec. 1.668(b)-1A, and
(c) In the case of a beneficiary of a trust which is not required to distribute all of its income currently, a partial tax determined as provided in Sec. 1.669(b)-1A. [T.D. 7204, 37 FR 17148, Aug. 25, 1972] Sec. 1.668(b)-1A Tax on distribution.
(a) In general. The partial tax imposed on the beneficiary by section 668(a)(2) shall be the lesser of:
(1) The tax computed under paragraph (b) of this section (the ``exact'' method), or
(2) The tax computed under paragraph (c) of this section (the ``short-cut'' method), except as provided in Sec. 1.668(b)-4A (relating to failure to furnish proper information) and paragraph (d) of this section (relating to disallowance of short-cut method). For purposes of this paragraph, the method used in the return shall be accepted as the method that produces the lesser tax. The beneficiary's choice of the two methods is not dependent upon the method that he uses to compute his partial tax imposed by section 668(a)(3).
(b) Computation of partial tax by the exact method. The partial tax referred to in paragraph (a)(1) of this section is computed as follows:
(1) First, compute the tax attributable to the section 666 amounts for each of the preceding taxable years. For purposes of this paragraph, the ``section 666 amounts'' for a preceding taxable year are the amounts deemed distributed under section 666(a) on the last day of the preceding taxable year, plus the amount of taxes deemed distributed on such day under section 666 (b) or (c). The tax attributable to such amounts in each prior taxable year of the beneficiary is the difference between the tax for such year computed with the inclusion of the section 666 amounts in the beneficiary's gross income and the tax for such year computed without including them in such gross income. Tax computations for each such year shall reflect a taxpayer's marital, dependency, exemption, and filing status for such year. To the extent the undistributed net income of a trust deemed distributed in an accumulation distribution includes amounts received as an accumulation distribution from another trust, for purposes of this paragraph they shall be considered as amounts deemed distributed by the trust under section 666(a) on the last day of each of the preceding taxable years in which such amounts were accumulated by such other trust. For example, assume trust Z, a calendar year trust, received in its taxable year 1975 an accumulation distribution from trust Y, a calendar year trust, that included undistributed net income and taxes of trust Y for the taxable years 1972, 1973, and 1974. To the extent an accumulation distribution made by trust Z in its taxable year 1976 includes such undistributed net income and taxes, it shall be considered an accumulation distribution by trust Z in the taxable year 1976 and under section 666(a) will be deemed distributed on the last day of the preceding taxable years 1972, 1973, and 1974.
(2) From the sum of the taxes for the prior taxable years attributable to the section 666 amounts (computed in accordance with subparagraph (1) of this paragraph), subtract so much of the amount of taxes deemed distributed to the beneficiary under Sec. Sec. 1.666(b)-1A and 1.666(c)-1A as does not exceed such sum. The resulting amount, if any, is the partial tax, computed under the exact method, for the taxable year in which the accumulation distribution is paid, credited, or required to be distributed to the beneficiary.
(3) The provisions of this paragraph may be illustrated by the following example:
(i) Assume that in 1979 a trust makes an accumulation distribution of $15,000 to A. The accumulation distribution is allocated under section 666(a) in the amounts of $5,000 to 1971, $4,000 to 1972, and $6,000 to 1973. Under section 666 (b) and (c), taxes in the amounts of $935, $715, and $1,155 (totaling $2,805) are deemed distributed in 1971, 1972, and 1973, respectively.
(ii) A, the beneficiary, had taxable income and paid income tax in 1971-73 as follows: ------------------------------------------------------------------------
Year Taxable income Tax------------------------------------------------------------------------1971.............................. $10,000 $2,1901972.............................. 12,000 2,8301973.............................. 14,000 3,550------------------------------------------------------------------------
(iii) Taxes attributable to the section 666 amounts (paragraph (i) of this example) are $6,979, computed as follows:
1971
Taxable income including section 666 amounts $15,935
($10,000 + $5,000 + $935)........................Tax on $15,935............................................... $4,305Less: Tax paid by A in 1971.................................. 2,190
------------Tax attributable to 1971 section 666 amounts................. 2,115
1972
Taxable income including section 666 amounts $16,715
($12,000 + $4,000 + $715)........................Tax on $16,715............................................... $4,620Less: Tax paid by A in 1972.................................. 2,830
------------Tax attributable to 1972 section 666 amounts................. 1,790
1973
Taxable income including section 666 amounts $21,155
($14,000 + $6,000 + $1,155)......................Tax on $21,155............................................... $6,624Less: Tax paid by A in 1973.................................. 3,550
------------Tax attributable to 1973 section 666 amounts................. 3,074Total tax attributable to section 666 amounts:
1971............................................ $2,115
1972............................................ 1,790
1973............................................ 3,074
-----------
Total......................................... 6,979
(iv) The partial tax computed under the exact method is $4,174, computed by subtracting the taxes deemed distributed ($2,805) from the tax attributable to the section 666 amounts ($6,979).
(c) Computation of tax by the short- cut method. (1) The tax referred to in paragraph (a)(2) of this section is computed as follows:
(1) The tax referred to in paragraph (a)(2) of this section is computed as follows:
(i) First, determine the number of preceding taxable years of the trust on the last day of which an amount is deemed under section 666(a) to have been distributed. For purposes of the preceding sentence, the preceding taxable years of a trust that has received an accumulation distribution from another trust shall include the taxable years of such other trust in which an amount was deemed distributed in such accumulation distribution. For example, assume trust Z, a calendar year trust, received in its taxable year 1975 an accumulation distribution from trust Y, a calendar year trust, that included undistributed net income of trust Y for the taxable years 1972, 1973, and 1974. To the extent an accumulation distribution made by trust Z in its taxable year 1976 includes such undistributed net income, it shall be considered an accumulation distribution by trust Z in the taxable year 1976 and under section 666(a) will be deemed distributed on the last day of the preceding taxable years 1972, 1973, and 1974. For purposes of this subparagraph, such number of preceding taxable years of the trust shall not include any preceding taxable year of the trust in which the undistributed net income deemed distributed is less than 25 percent of (a) the total amounts deemed under section 666(a) to be undistributed net income from preceding taxable years divided by (b) the number of such preceding taxable years of the trust on the last day of which an amount is deemed under section 666(a) to have been distributed without application of this sentence. For example, assume that an accumulation distribution of $90,000 made to a beneficiary in 1979 is deemed distributed in the amounts of $29,000 in each of the years 1972, 1973, and 1974, and $3,000 in 1975. The number of preceding taxable years on the last day of which an amount was deemed distributed without reference to the second sentence of this subparagraph is four. However, the distribution deemed made in 1975 ($3,000) is less than $5,625, which is 25 percent of (a) the total undistributed net income deemed distributed under section 666(a) ($90,000) divided by (b) the number of such preceding taxable years (4), or $22,500. Therefore, for purposes of this subparagraph the accumulation distribution is deemed distributed in only 3 preceding taxable years (1972, 1973, and 1974).
(ii) Second, divide the amount (representing the accumulation distribution and taxes deemed distributed) required under section 668(a) to be included in the income of the beneficiary for the taxable year by the number of preceding taxable years of the trust on the last day of which an amount is deemed under section 666(a) to have been distributed (determined as provided in subdivision (i) of this subparagraph). The amount determined under this subdivision, including taxes deemed distributed, consists of the same proportion of each class of income as the total of each class of income deemed distributed in the accumulation distribution bears to the total undistributed net income from such preceding taxable years deemed distributed in the accumulation distribution. For example, assume that an amount of $50,000 is deemed distributed under section 666(a) from undistributed net income of 5 preceding taxable years of the trust, and consists of $25,000 of interest, $15,000 of dividends, and $10,000 of net rental income. Taxes attributable to such amounts in the amount of $10,000 are also deemed distributed. The amount determined under this subdivision, $12,000 ($50,000 income plus $10,000 tax divided by 5 years), is deemed to consist of $6,000 in interest, $3,600 in dividends, and $2,400 in net rental income.
(iii) Third, compute the tax of the beneficiary for each of the 3 taxable years immediately preceding the year in which the accumulation distribution is paid, credited, or required to be distributed to him,
(a) With the inclusion in gross income of the beneficiary for each of such 3 years of the amount determined under subdivision (ii) of this subparagraph, and
(b) Without such inclusion. The difference between the amount of tax computed under (a) of this subdivision for each year and the amount computed under (b) of this subdivision for that year is the additional tax resulting from the inclusion in gross income for that year of the amount determined under subdivision (ii) of this subparagraph. For example, assume that a distribution of $12,000, is includible in the income of each of the beneficiary's 3 preceding taxable years when his income (without the inclusion of the accumulation distribution) was $20,000, $30,000, and $40,000. The inclusion of $12,000 in income would produce taxable income of $32,000, $42,000, and $52,000, and the tax attributable to such increases would be $4,000, $5,000, and $6,000, respectively.
(iv) Fourth, add the additional taxes resulting from the application of subdivision (iii) of this subparagraph and then divide this amount by 3. For example, if these additional taxes are $4,000, $5,000, and $6,000 for the 3 preceding taxable years, this amount would be $5,000 ($4,000+$5,000+ $6,000 divided by 3).
(v) Fifth, the resulting amount is then multiplied by the number of preceding taxable years of the trust on the last day of which an amount is deemed under section 666(a) to have been distributed (previously determined under subdivision (i) of this subparagraph). For example, if an amount is deemed distributed for 5 preceding taxable years, the resulting amount would be five times the $5,000 amount.
(vi) Sixth, the resulting amount, less so much of the amount of taxes deemed distributed to the beneficiary under Sec. Sec. 1.666(b)-1A and 1.666(c)-1A as does not exceed such resulting amount, is the tax under the short-cut method provided in section 668(b)(1)(B).
(2) The computation of the tax by the short-cut method may be illustrated by the following example:
Example. In 1971, X creates a trust which is to accumulate its income and pay the income to Y when Y reaches 30. Y is 19. Over the 11 years of the trust, the trust earns $1,200 of interest income annually and has expenses each year of $100 allocable to the production of income. The trust pays a total tax of $1,450 on the accumulated income. In 1981, when Y reaches 30, the $9,550 of accumulated undistributed net income and the $1,100 of current net income are distributed to Y. Y is treated as having received a total distribution of $11,000 (the $9,550 accumulation distribution plus the taxes paid by the trust which are deemed to have been distributed to Y). The income of the current year (1981) is taxed directly to Y. The computation is as follows: $11,000 (accumulation distribution plus taxes) divided by 10 (number of years out of which distribution was made) equals $1,100. The $1,100 added to the income of the beneficiary's preceding 3 years produces increases in tax as follows:
1980................................................ $350
1979................................................ 300
1978................................................ 250
-----------------
Total............................................. 900
$900 (total additional tax) divided by 3 equals $300 (average annual increase in tax). $300 (average annual increase in tax) times 10 equals $3,000, from which is deducted the amount of taxes ($1,450) paid by the trust attributable to the undistributed net income deemed distributed. The amount of tax to be paid currently under the short-cut method is therefore $1,550.
(d) Disallowance of short-cut method. If, in any prior taxable year of the beneficiary in which any part of the accumulation distribution of undistributed net income is deemed to have been distributed under section 666(a) to such beneficiary, any part of prior accumulation distributions of undistributed net income by each of two or more other trusts is deemed under section 666(a) to have been distributed to such beneficiary, then the short-cut method under paragraph (c) of this section may not be used and the partial tax imposed by section 668(a)(2) shall be computed only under the exact method under paragraph (b) of this section. For example, assume that, in 1978, trust X makes an accumulation distribution of undistributed net income to A, who is on the calendar year basis, and part of the accumulation distribution is deemed under section 666(a) to have been distributed on March 31, 1974. In 1977, A had received an accumulation distribution of undistributed net income from both trust Y and trust Z. Part of the accumulation distribution from trust Y was deemed under section 666(a) to have been distributed to A on June 30, 1974, and part of the accumulation distribution from trust Z was deemed under section 666(a) to have been distributed to A on December 31, 1974. Because there were portions of accumulation distributions of undistributed net income from two other trusts deemed distributed within the same prior taxable year of A (1974), the 1978 accumulation distribution from trust X may not be computed under the short-cut method provided in paragraph (c) of this section. Therefore the exact method under paragraph (b) of this section must be used to compute the tax imposed by section 666(a)(2). [T.D. 7204, 37 FR 17149, Aug. 25, 1972] Sec. 1.668(b)-2A Special rules applicable to section 668.
(a) Rule when beneficiary not in existence on the last day of a taxable year. If a beneficiary was not in existence on the last day of a preceding taxable year of the trust with respect to which a distribution is deemed made under section 666(a), it shall be assumed, for purposes of the computations under paragraphs (b) and (c) of Sec. 1.668(b)-1A, that the beneficiary:
(1) Was in existence on such last day,
(2) Was a calendar year taxpayer,
(3) Had no gross income other than the amounts deemed distributed to him from such trust in his calendar year in which such last day occurred and from all other trusts from which amounts are deemed to have been distributed to him in such calendar year,
(4) If an individual, was unmarried and had no dependents,
(5) Had no deductions other than the standard deduction, if applicable, under section 141 for such calendar year, and
(6) Was entitled to the personal exemption under section 151 or 642(b). For example, assume that part of an accumulation distribution made in 1980 is deemed under section 666(a) to have been distributed to the beneficiary, A, in 1973; $10,000 of a prior accumulation distribution was deemed distributed in 1973. A was born on October 9, 1975. It will be assumed for purposes of Sec. 1.668(b)-1A that A was alive in 1973, was on the calendar year basis, had no income other than (i) the $10,000 from the earlier accumulation distribution deemed distributed in 1973, and (ii) the part of the 1980 distribution deemed distributed in 1973, and had no deductions other than the personal exemption provided in section 151. It should be noted that the standard deduction for 1973 will be available to A with respect to the distribution only to the extent it qualifies as ``earned income'' in the hands of the trust. See section 141(e) and the regulations thereunder and Sec. 1.652(b)-1. If A were a trust or estate created after 1973, the same assumptions would apply, except that the trust or estate would not be entitled to the standard deduction and would receive the personal exemption provided under section 642(b) in the same manner as allowed under such section for A's first actual taxable year.
(b) Effect of other distributions. The income of the beneficiary, for any of his prior taxable years for which a tax is being recomputed under Sec. 1.668(b)-1A, shall include any amounts of prior accumulation distributions (including prior capital gain distributions) deemed distributed under sections 666 and 669 in such prior taxable year. For purposes of the preceding sentence, a ``prior accumulation distribution'' is a distribution from the same or another trust which was paid, credited, or required to be distributed in a prior taxable year of the beneficiary. The term ``prior accumulation distribution'' also includes accumulation distributions of other trusts which were paid, credited, or required to be distributed to the beneficiary in the same taxable year and which the beneficiary has determined under paragraph (c) of this section to treat as having been distributed before the accumulation distribution for which tax is being computed under Sec. 1.668(b)-1A. Any capital gain distribution from the same trust paid, credited, or required to be distributed in the same taxable year of the beneficiary shall not be considered under this paragraph to be a ``prior capital gain distribution.''
(c) Multiple distributions in the same taxable year. For purposes of paragraph (b) of this section, accumulation distributions made from more than one trust in the same taxable year of the beneficiary, regardless of when in the taxable year they were actually made, shall be treated as having been made consecutively, in whichever order the beneficiary may determine. However, the beneficiary must treat them as having been made in the same order for the purpose of computing the partial tax on the several accumulation distributions. The beneficiary shall indicate the order he has determined to deem the accumulation distributions to have been received by him on his return for the taxable year. A failure by him so to indicate, however, shall not affect his right to make such determination. The purpose of this rule is to assure that the tax resulting from the later (as so deemed under this paragraph) distribution is computed with the inclusion of the earlier distribution in the taxable base and that the tax resulting from the earlier (as so deemed under this paragraph) distribution is computed with the later distribution excluded from the taxable base.
(d) Examples. The provisions of paragraphs (b) and (c) of this section may be illustrated by the following examples:
Example 1. In 1978, trust X made an accumulation distribution of undistributed net income to A, a calendar year taxpayer, of which $3,000 was deemed to have been distributed in 1974. In 1980, trust X makes another accumulation distribution of undistributed net income to A, $10,000 of which is deemed under section 666 to have been distributed in 1974. Also in 1980, trust Y makes an accumulation distribution of undistributed net income to A, of which $5,000 is deemed under section 666 to have been distributed in 1974. A determines to treat the 1980 distribution from trust Y as having been made prior to the 1980 distribution from trust X. In computing the tax on the 1980 trust Y distribution, A's gross income for 1974 includes (i) the $3,000 deemed distributed from the 1978 distribution, and (ii) the $5,000 deemed distributed in 1974 from the 1980 trust Y accumulation distribution. To compute A's tax under the exact method for 1974 on the $10,000 from the 1980 trust X accumulation distribution deemed distributed in 1974, A's gross income for 1974 includes (i) the $10,000, (ii) the $3,000 previously deemed distributed in 1974 from the 1978 trust X accumulation distribution, and (iii) the $5,000 deemed distribution in 1974 from the 1980 trust Y accumulation distribution.
Example 2. In 1978, trust T makes an accumulation distribution of undistributed net income to B, a calendar year taxpayer. Determination of the tax on the accumulation distribution under the short-cut method requires the use of B's gross income for 1975, 1976, and 1977. In 1977, B received an accumulation distribution of undistributed net income from trust U, of which $2,000 was deemed to have been distributed in 1975, and $3,000 in 1976. B's gross income for 1975, for purposes of using the short-cut method to determine the tax from the trust T accumulation distribution, will be deemed to include the $2,000 deemed distributed in 1975 by trust U, and his gross income for 1976 will be deemed to include the $3,000 deemed distributed by trust U in 1976. [T.D. 7204, 37 FR 17151, Aug. 25, 1972] Sec. 1.668(b)-3A Computation of the beneficiary's income and tax fora prior taxable year.
(a) Basis for computation. (1) The beneficiary's income and tax paid for any prior taxable year for which a recomputation is involved under either the exact method or the short-cut method shall be determined by reference to the information required to be furnished by him under Sec. 1.668(b)-4A(a). The gross income, related deductions, and taxes paid for a prior taxable year of the beneficiary as finally determined shall be used for computation purposes. The term ``as finally determined'' has reference to the final status of the gross income, deductions, credits, and taxes of the taxable year after the expiration of the period of limitations or after completion of any court action regarding the tax for the taxable year.
(1) The beneficiary's income and tax paid for any prior taxable year for which a recomputation is involved under either the exact method or the short-cut method shall be determined by reference to the information required to be furnished by him under Sec. 1.668(b)-4A(a). The gross income, related deductions, and taxes paid for a prior taxable year of the beneficiary as finally determined shall be used for computation purposes. The term ``as finally determined'' has reference to the final status of the gross income, deductions, credits, and taxes of the taxable year after the expiration of the period of limitations or after completion of any court action regarding the tax for the taxable year.
(2) If any computations rely on the beneficiary's return for a prior taxable year for which the applicable period of limitations on assessment under section 6501 has expired, and such return shows a mathematical error on its face which resulted in the wrong amount of tax being paid for such year, the determination of both the tax for such year computed with the inclusion of the section 666 amount in the beneficiary's gross income and the tax for such year computed without including such amounts in such gross income shall be based upon the return after the correction of such mathematical errors, and the beneficiary shall be credited for the correct amount of tax that should have been properly paid.
(b) Effect of allocation of undistributed net income on items based on amount of income and with respect to a net operating loss, a charitable contributions carryover, or a capital loss carryover. (1) In computing the tax for any taxable year under either the exact method or the short-cut method, any item which depends upon the amount of gross income, adjusted gross income, or taxable income shall be recomputed to take into consideration the amount of undistributed net income allocated to such year. For example, if $1,000 of undistributed net income is allocated to 1970, adjusted gross income for 1970 is increased from $5,000 to $6,000. The allowable 50 percent charitable deduction under section 170(b)(1)(A) is then increased and the amount of the nondeductible medical expenses under section 213 (3 percent of adjusted gross income) is also increased.
(1) In computing the tax for any taxable year under either the exact method or the short-cut method, any item which depends upon the amount of gross income, adjusted gross income, or taxable income shall be recomputed to take into consideration the amount of undistributed net income allocated to such year. For example, if $1,000 of undistributed net income is allocated to 1970, adjusted gross income for 1970 is increased from $5,000 to $6,000. The allowable 50 percent charitable deduction under section 170(b)(1)(A) is then increased and the amount of the nondeductible medical expenses under section 213 (3 percent of adjusted gross income) is also increased.
(2) In computing the tax attributable to the undistributed net income deemed distributed to the beneficiary in any of his prior taxable years under either the exact method or the short-cut method, the effect of amounts of undistributed net income on a net operating loss carryback or carryover, a charitable contributions carryover, or a capital loss carryback or carryover, shall be taken into account. In determining the amount of tax attributable to such deemed distribution, a computation shall also be made for any taxable year which is affected by a net operating loss carryback or carryover, by a charitable contributions carryover, or by a capital loss carryback or carryover determined by reference to the taxable year to which amounts are allocated under either method and which carryback or carryover is reduced or increased by such amounts so allocated. The provisions of this subparagraph may be illustrated by the following example:
Example. In 1978, a trust makes an accumulation distribution of undistributed net income to X of $50,000 that is deemed under section 666(a) to have been distributed in 1972. X had income in 1972, 1973, and 1973, and had a net operating loss in 1975 that offset his taxable income (computed as provided in Sec. 1.172-5) for those years, as follows: ------------------------------------------------------------------------
Income after net
Actual income operating loss
Year (or loss) carryback
(n.o.l.c.b.)------------------------------------------------------------------------1972.............................. $10,000 $01973.............................. 50,000 01974.............................. 50,000 10,0001975.............................. (100,000) 0------------------------------------------------------------------------
As a result of the allocation of the 1973 accumulation distribution to 1972, X's income for 1972, 1973, 1974, and 1975, after taking into account the 1975 n.o.l.c.b., is deemed to be as follows: ------------------------------------------------------------------------
Income deemed to have been
earned after consideration of
Year n.o.l.c.b., and accumulation
distribution------------------------------------------------------------------------1972.................................. 0 ($10,000+$50,000-$60,000
n.o.l.c.b.).1973.................................. $10,000 ($50,000-$40,000 balance
of n.o.l.c.b.).1974.................................. $50,000.1975.................................. 0.------------------------------------------------------------------------
Therefore, the tax on the 1978 accumulation distribution to X is the tax X would have paid in 1973 and 1974 had he had the above income in such years.
(c) Averaging. A beneficiary who uses the exact method may recompute his tax for a prior taxable year by using income averaging for all of his actual income for that year, plus the amount deemed distributed in that year under section 666, even though he may not have actually used section 1301 to determine his income tax for such taxable year. For purposes of such recomputation, the beneficiary's income for all other taxable years involved must include any amounts deemed distributed in such years from the current and all prior accumulation distributions. See Sec. 1.668(b)-4A(c)(3) for additional information requirements. The beneficiary may not apply the provisions of this paragraph to a taxable year in which an amount is deemed to be income by reason of Sec. 1.666(d)-1A(b). The accumulation distribution itself is not eligible for income averaging in the years in which it is paid, credited, or required to be distributed. See section 1302 (a)(2)(B) and the regulations thereunder. [T.D. 7204, 37 FR 17151, Aug. 25, 1972] Sec. 1.668(b)-4A Information requirements with respect to beneficiary.
(a) Information to be supplied by beneficiary--(1) In general. The beneficiary must supply the information required by subparagraph (3) of this paragraph for any prior taxable year for which a recomputation is required under either the exact method or the short-cut method. Such information shall be filed with the beneficiary's return for the year in which the tax under section 668(a)(2) is imposed.
(1) In general. The beneficiary must supply the information required by subparagraph (3) of this paragraph for any prior taxable year for which a recomputation is required under either the exact method or the short-cut method. Such information shall be filed with the beneficiary's return for the year in which the tax under section 668(a)(2) is imposed.
(2) Failure to furnish. If the beneficiary fails to furnish the information required by this paragraph for any prior year involved in the exact method, he may not use such method and the tax computed under paragraph (c) of Sec. 1.668(b)-1A (the short-cut method) shall be deemed to be the amount of partial tax imposed by section 668(a)(2). See, however, paragraph (b) of this section for an exception to this rule where the short-cut method is not permitted. If he cannot furnish the information required for a prior year involved in the short-cut method, such year will be recomputed on the basis of the best information available.
(3) Information required. The beneficiary shall file the following items with his income tax return for the taxable year in which the accumulation distribution is included in income:
(i) A statement showing the gross income, adjustments, deductions, credits, taxes paid, and computations for each of his taxable years for which a computation is required under the method by which he computes his partial tax imposed by section 668(a)(2). Such statement shall include such amounts for the taxable year as adjusted by any events subsequent to such year, such as any adjustment resulting from the determination of a deficiency or an overpayment, or from a court action regarding the tax.
(ii) A copy of the statement required by this subparagraph to be furnished by the beneficiary for any prior taxable year in which an accumulation distribution was received by him which was also deemed distributed in whole or in part in the prior taxable year for which the statement under subdivision (i) of this subparagraph is required.
(iii) A copy of any statements furnished the beneficiary by the trustee (such as schedules E and J of Form 1041, etc.) with regard to the current taxable year or any prior taxable year for which a statement is furnished under subdivision (i) of this subparagraph.
(b) Exception. If by reason of Sec. 1.668(b)-1A(e) the beneficiary may not compute the partial tax on the accumulation distribution under Sec. 1.668(b)-1A(c) (the short-cut method), the provisions of subparagraph (2) of paragraph (a) of this section shall not apply. In such case, if the beneficiary fails to provide the information required by subparagraph (3) of paragraph (a) of this section for any prior taxable year, the district director shall, by utilizing whatever information is available to him (including information supplied by the beneficiary), determine the beneficiary's income and related expenses for such prior taxable year.
(c) Records to be supplied by the beneficiary--(1) Year when return was filed. If the beneficiary filed an income tax return for a taxable year for which a recomputation is necessary, and the period of limitations on assessment under section 6501 for such year has expired as of the filing of the return for the year in which the accumulation distribution was made, then a copy of such return, plus proof of any changes of liability for such year due to the determination of a deficiency or an overpayment, court action, etc., shall, to the extent they verify the statements required under paragraph (a) of this section, serve as proof of such statements. If the period of limitations on assessment under section 6501 for a prior taxable year has not expired as of the filing of the beneficiary's return for the year in which the accumulation distribution was received, then the records required by section 6001 to be retained by the beneficiary for such prior taxable year shall serve as the basis of proof of the statements required to be filed under paragraph (a) of this section.
(1) Year when return was filed. If the beneficiary filed an income tax return for a taxable year for which a recomputation is necessary, and the period of limitations on assessment under section 6501 for such year has expired as of the filing of the return for the year in which the accumulation distribution was made, then a copy of such return, plus proof of any changes of liability for such year due to the determination of a deficiency or an overpayment, court action, etc., shall, to the extent they verify the statements required under paragraph (a) of this section, serve as proof of such statements. If the period of limitations on assessment under section 6501 for a prior taxable year has not expired as of the filing of the beneficiary's return for the year in which the accumulation distribution was received, then the records required by section 6001 to be retained by the beneficiary for such prior taxable year shall serve as the basis of proof of the statements required to be filed under paragraph (a) of this section.
(2) Year for which no return was filed. If the beneficiary did not file a return for a taxable year for which a recomputation is necessary, he shall be deemed to have had in such year, in the absence of proof to the contrary, gross income in the amount equal to the maximum amount of gross income that he could have received without having had to file a return under section 6012 for such year.
(3) Distributions deemed averaged. In order for a beneficiary to use income averaging with respect to a prior taxable year (see Sec. 1.668(b)-3A(c)), he must furnish all the information that would support the computation under section 1301 as if the distribution were actually received and averaged in such prior taxable year, even if a portion of the information relates to years in which no amount was deemed distributed to the beneficiary. [T.D. 7204, 37 FR 17152, Aug. 25, 1972] Sec. 1.668(a)-1 Amounts treated as received in prior taxable years;inclusion in gross income.
(a) Section 668(a) provides that the total of the amounts treated under section 666 as having been distributed by the trust on the last day of a preceding taxable year of the trust shall be included in the gross income of the beneficiary or beneficiaries receiving them. The total of such amounts is includible in the gross income of each beneficiary to the extent the amounts would have been included under section 662 (a)(2) and (b) if the total had actually been paid by the trust on the last day of such preceding taxable year. The total is included in the gross income of the beneficiary for the taxable year of the beneficiary in which such amounts are in fact paid, credited, or required to be distributed unless the taxable year of the beneficiary differs from the taxable year of the trust (see section 662(c) and the regulations thereunder). The character of the amounts treated as received by a beneficiary in prior taxable years, including taxes deemed distributed, in the hands of the beneficiary is determined by the rules set forth in section 662(b) and the regulations thereunder. See paragraphs (h)(1)(ii) and (j)(1)(ii) of Sec. 1.668(b)-2.
(b) The total of the amounts treated under section 666 as having been distributed by the trust on the last day of a preceding taxable year of the trust are included as prescribed in paragraph (a) of this section in the gross income of the beneficiary even though as of that day the beneficiary would not have been entitled to receive them had they actually been distributed on that day.
(c) Any deduction allowed to the trust in computing distributable net income for a preceding taxable year (such as depreciation, depletion, etc.) is not deemed allocable to a beneficiary because of amounts included in a beneficiary's gross income under this section since the deduction has already been utilized in reducing the amount included in the beneficiary's income. Sec. 1.668(a)-2 Allocation among beneficiaries; in general.
The portion of the total amount includible in gross income under Sec. 1.668 (a)-1 which is includible in the gross income of a particular beneficiary is based upon the ratio determined under the second sentence of section 662(a)(2) for the taxable year (and not for the preceding taxable year). This section may be illustrated by the following example:
(a) Under the terms of a trust instrument, the trustee may accumulate the income or make distributions to A and B. The trustee may also invade corpus for the benefit of A and B. The distributable net income of the trust for the taxable year 1955 is $10,000. The trust had undistributed net income for the taxable year 1954 of $5,000, to which a tax of $1,100 was allocable. During the taxable year 1955, the trustee distributes $10,000 to A and $5,000 to B. Thus, of the total distribution of $15,000, A received two-thirds and B received one-third.
(b) For the purposes of determining the amounts includible in the beneficiaries' gross income for 1955, the trust is deemed to have made the following distributions: Amount distributed out of 1955 income (distributable net $10,000
income).....................................................Accumulation distribution deemed distributed by the trust on 5,000
the last day of 1954 under section 666(a)...................
Taxes imposed on the trust deemed distributed under section 1,100
666(b)......................................................
(c) A will include in his gross income for 1955 two-thirds of each item shown in paragraph (b) of this example. Thus, he will include in gross income $6,666.67 (10,000/ 15,000x$10,000) of the 1955 distributable net income of the trust as provided in section 662(a)(2), and $3,333.33 (10,000/ 15,000x$5,000) of the accumulation distribution and $733.33 (10,000/15,000x$1,100) of the taxes imposed on the trust as provided in section 668(a).
(d) B will include in his gross income for 1955 one-third of each item shown in paragraph (b) of this example, computed in the manner shown in paragraph (c) of this example. Sec. 1.668(a)-3 Excluded amounts.
When a trust pays, credits, or is required to distribute to a beneficiary amounts which are excluded under section 665(b) (1), (2), (3), or (4) from the computation of an accumulation distribution, the amount includible under subpart D (section 665 and following), part I, subchapter J, chapter 1 of the Code, in the gross income of the beneficiaries pursuant to Sec. 1.668(a)-1 is first allocated to the beneficiaries as provided in Sec. 1.668(a)-2 and, second, the amount allocable to the beneficiary receiving amounts which are excluded under section 665(b) (1), (2), (3), or (4) is reduced by the excluded amounts. This section may be illustrated by the following examples, in which it is assumed the trusts and beneficiaries report on the calendar year basis and the income of the trusts was derived entirely from taxable interest:
(a) A trust in 1957 has income as defined in section 643(b) of $35,000 and expenses allocable to corpus of $5,000. Its distributable net income is, therefore, $30,000 ($35,000-$5,000). The undistributed net income of the trust and the taxes imposed on the trust were $12,840 and $7,260, respectively, for each of the years 1956, 1955, and 1954. The terms of the trust instrument provide for the accumulation of income during the minority of beneficiaries A and B. However, the trustee may make discretionary distributions to either beneficiary after he becomes 21 years of age. Also, the trustee may invade corpus for the benefit of A and B. B became 21 years of age on January 1, 1957, and, as of that date, A was 25 years old. The trustee distributed $50,000 each to A and B during 1957.
(b) Since each beneficiary received one-half of the total amount distributed by the trust, each must include in gross income under section 662(a)(2) one-half ($15,000) of the distributable net income ($30,000) of the trust for 1957.
(c) The excess distribution of $35,000 ($50,000-$15,000) received by B is excluded from the determination of an accumulation distribution under section 665(b)(1) and accordingly is not includible in B's gross income under section 668(a). Nor is such amount treated as an accumulation distribution for the purpose of determining the amount includible in A's gross income under section 668(a).
(d) The accumulation distribution of the trust is $35,000, computed as follows: Total distribution by the trust................. .......... $100,000Less:
Distributable net income for 1957............. $30,000
Excess distribution to B...................... 35,000
------------
65,000
-------------
Accumulation distribution to A.......................... 35,000
(e) The accumulation distribution of $35,000 will be allocated to the preceding taxable years 1956, 1955, and 1954, and the trust will be deemed to have made the following distributions to A on the last day of those years: ------------------------------------------------------------------------
1956 1955 1954 Total------------------------------------------------------------------------Undistributed net income.... $12,840 $12,840 $9,320 $35,000Taxes imposed on the trust.. 7,260 7,260 5,270 19,790
-------------------------------------------Total....................... 20,100 20,100 14,590 54,790------------------------------------------------------------------------ Thus, A will include $54,790 in his gross income for 1957 under section 668(a). A will, however, receive credit against his tax under section 668(b).
(a) Under the terms of a trust the trustee may make discretionary distributions out of income to A during her life. The balance of the income is to be accumulated during the minority of her son, B, and is to be distributed to him when he becomes 21 years of age. Thereafter the trustee may also make discretionary payments of income to B. Also, the trustee may invade corpus for the benefit of A and B. B became 21 years of age on December 31, 1955. The distributable net income of the trust for 1955 is $30,000. It had undistributed net income of $12,840 for the preceding taxable year 1954 and the taxes imposed on the trust for such year were $7,260. The trustee distributed $15,000 to A during 1955 and on December 31, 1955, he distributed $60,000 to B, which represented income accumulated during his minority.
(b) Since B received four-fifths of the total amount ($75,000) distributed by the trust during 1955, he must include in his gross income under section 662(a)(2) four-fifths ($24,000) of the distributable net income ($30,000) of the trust for 1955. A will include in her gross income under section 662(a)(2) one-fifth ($6,000) of the distributable net income ($30,000) of the trust for 1955.
(c) The excess distribution of $36,000 ($60,000-$24,000) received by B is excluded from the determination of an accumulation distribution under section 665(b)(1) and accordingly is not includible in his gross income under section 668(a).
(d) The amount treated as an accumulation distribution for the purpose of determining the amount includible in A's gross income for 1955 under section 668(a) is $9,000, computed as follows: Total distribution by the trust................. .......... $75,000Less:
Distributable net income for 1955............. $30,000
Excess distribution to B...................... 36,000
-------------
66,000
-------------
Amount treated as an accumulation distribution.......... 9,000
(e) Inasmuch as the amount of $9,000 is less than the total undistributed net income of the trust ($12,840) for the preceding taxable year 1954, a pro rata portion of the taxes imposed on the trust for that year are also deemed distributed by the trust. Thus, A will include $14,089 in her gross income for 1955 under section 668 (a) computed as follows:
1954Accumulation distribution................................... $9,000Taxes imposed on the trust (9,000/ 12,840x$7,260)........... 5,089
-------------
Total................................................... 14,089
A will, however, receive credit against her tax under section 668(b). Sec. 1.668(a)-4 Tax attributable to throwback.
(a) The tax attributable to amounts deemed distributed under section 666 is imposed on the beneficiary for the taxable year of the beneficiary in which the accumulation distribution is made unless the taxable year of the beneficiary is different from that of the trust (see section 662(c) and the regulations thereunder). In the case of a trust (other than a foreign trust created by a U.S. person), the tax cannot be greater than the aggregate of the taxes attributable to those amounts had they been included, in accordance with the provisions of section 662 (a)(2) and (b), in the gross income of the beneficiary for the preceding taxable year or years in which they were deemed distributed. In the case of a foreign trust created by a U.S. person, the tax on the beneficiary shall be computed in accordance with the provisions of section 669 and the regulations thereunder. The tax liability of the beneficiary of a trust (other than a foreign trust created by a U.S. person), including the portion of an entire foreign trust which does not constitute a foreign trust created by a U.S. person (see Sec. 1.643(d)-1), for the taxable year is computed in the following manner:
(1) First, compute the amount of tax for the taxable year attributable to the section 666 amounts which are included in the gross income of the beneficiary for the year. The tax attributable to those amounts is the difference between the tax for the taxable year computed with the inclusion of the section 666 amounts in gross income and the tax computed without including them in gross income.
(2) Next, compute the tax attributable to the section 666 amounts for each of the preceding taxable years as if they had been included in gross income for those years. The tax attributable to such amounts in each such preceding taxable year is the difference between the tax for such preceding year computed with the inclusion of the section 666 amounts in gross income and the tax for such year computed without including them in gross income. The tax computation for each preceding year shall reflect the taxpayer's marital and dependency status for that year.
(3) The total tax for the taxable year is the tax for that year computed without including the section 666 amounts, plus:
(i) The amount of the tax for the taxable year attributable to the section 666 amounts (computed in accordance with subparagraph (1) of this paragraph), or (ii) The sum of the taxes for the preceding taxable years attributable to the section 666 amounts (computed in accordance with subparagraph (2) of this paragraph), whichever is the smaller.
(b) The provisions of paragraph (a) of this section may be illustrated by the following example:
(1) During the taxable year 1956, $10,000 is deemed distributed under section 666 to a beneficiary, of which $6,000 is deemed distributed by the trust on the last day of 1955 and $4,000 on the last day of 1954. The beneficiary had taxable income (after deductions) from other sources of $5,000 for 1956, $10,000 for 1955, and $10,000 for 1954. The beneficiary's tax liability for 1956 is $4,730 determined as follows:
Year 1956
Tax on $15,000 (taxable income including section 666 amounts) $4,730Tax on $5,000 (taxable income excluding section 666 amounts). 1,100
------------
Tax attributable to section 666 amounts.................. 3,630
============
Year 1955
Tax on $16,000 (taxable income including section 666 amounts) $5,200Tax on $10,000 (taxable income excluding section 666 amounts) 2,640
------------
Tax attributable to section 666 amounts.................. 2,560
============
Year 1954
Tax on $14,000 (taxable income including section 666 amounts) $4,260Tax on $10,000 (taxable income excluding section 666 amounts) 2,640
------------
Tax attributable to section 666 amounts.................. 1,620
============
(2) Inasmuch as the tax of $3,630 attributable to the section 666 amounts as computed at 1956 rates is less than the aggregate of the taxes of $4,180 ($2,560 plus $1,620) determined for the preceding taxable years the amount of $3,630 is added to the tax ($1,100) computed for 1956 without including the section 666 amounts. [T.D. 6500, 25 FR 11814, Nov. 26, 1960, as amended by T.D. 6989, 34 FR 737, Jan. 17, 1969] Sec. 1.668(b)-1 Credit for taxes paid by the trust.
(a) The taxes imposed on a complex trust for a taxable year which would not have been payable by the trust if amounts deemed under section 666 to have been distributed in the year had in fact been distributed in the year are not allowable as a refund to the trust but are allowable as a credit against the tax of the beneficiaries to whom the amounts described in section 666(a) are distributed.
(b) The credit to which a beneficiary is entitled under section 668(b) is allowed for the taxable year in which the accumulation distribution (to which the credit relates) is required to be included in the gross income of the beneficiary. Any excess over the total tax liability of the beneficiary is treated as an overpayment of tax by the beneficiary.
(c) The beneficiary is entitled to a portion of the credit described in paragraph (a) of this section in the ratio which the amount of the accumulation distribution to him bears to the accumulation distributions to all the beneficiaries. Sec. 1.668(b)-2 Illustration of the provisions of subpart D.
The provisions of subpart D (section 665 and following), part I, subchapter J, chapter 1 of the Code, other than provisions relating to a foreign trust created by a U.S. person, may be illustrated by the following example:
(a) Facts. (1) Under the terms of a trust instrument, one-half of the trust income is required to be distributed currently to beneficiary A. The trustee may in his discretion accumulate the balance of the income of the trust or he may make distributions to B out of income or corpus. The trust is to terminate upon the death of A and the corpus is to be distributed to B. Capital gains are allocable to corpus. All of the expenses of the trust are charges against income. The trust instrument provides for a reserve for depreciation, so that depreciation is deductible in computing distributable net income. The trust and both beneficiaries report on the calendar year basis. The trust had long-term capital gains of $20,000 for 1954, and $10,000 for 1955, which were allocated to corpus. The distributable net income of the trust as determined under section 643(a) for 1954, 1955, 1956, and 1957 is deemed to consist of the following items of income: ----------------------------------------------------------------------------------------------------------------
(1) Under the terms of a trust instrument, one-half of the trust income is required to be distributed currently to beneficiary A. The trustee may in his discretion accumulate the balance of the income of the trust or he may make distributions to B out of income or corpus. The trust is to terminate upon the death of A and the corpus is to be distributed to B. Capital gains are allocable to corpus. All of the expenses of the trust are charges against income. The trust instrument provides for a reserve for depreciation, so that depreciation is deductible in computing distributable net income. The trust and both beneficiaries report on the calendar year basis. The trust had long-term capital gains of $20,000 for 1954, and $10,000 for 1955, which were allocated to corpus. The distributable net income of the trust as determined under section 643(a) for 1954, 1955, 1956, and 1957 is deemed to consist of the following items of income: ----------------------------------------------------------------------------------------------------------------
Interest Interest
Dividends Rents (taxable) (exempt) Total----------------------------------------------------------------------------------------------------------------1954....................................................... $15,000 $20,000 $10,000 $5,000 $50,0001955....................................................... 10,000 15,000 10,000 5,000 40,0001956....................................................... 10,000 20,000 15,000 5,000 50,0001957....................................................... 10,000 15,000 15,000 5,000 45,000----------------------------------------------------------------------------------------------------------------
(2) One-half ($7,500) of the dividends for 1954 was received by the trust on or before July 31, 1954, and the balance was received after that date.
(3) The following distributions were made by the trustee to A and B during the taxable years 1954 through 1957: ------------------------------------------------------------------------
A B------------------------------------------------------------------------1954.................................... $25,000 None1955.................................... 20,000 None1956.................................... 25,000 $45,0001957.................................... 22,500 29,550------------------------------------------------------------------------
(b) Distributions to A. A is deemed to have received one-half of each item of income entering into the computation of distributable net income as shown in paragraph (a)(1) of this example. See Sec. 1.662(a)-2 for rules for the treatment of currently distributable income in the hands of the beneficiary.
(c) Tax liability of the trust--(1) 1954. (i) The tax liability of the trust for the taxable year 1954 is $13,451, computed as follows: Distributable net income under section 643(a) (paragraph $50,000
(a)(1) of this example).....................................Less amounts not includible in gross income:
(1) of this example).....................................Less amounts not includible in gross income:
Tax-exempt interest............................. $5,000
Dividend exclusion.............................. 50
-----------
5,050
------------
Distributable net income as adjusted..................... 44,950Add: Capital gains (long-term)............................... 20,000
------------
Total.................................................... 64,950Deductions:
Distributions to A.............................. $22,475
Capital gain deduction.......................... $10,000
Personal exemption.............................. 100
-----------
32,575
------------
Taxable income........................................... 32,375Alternative tax.............................................. 13,601Dividend received credit..................................... 150
------------
Tax liability............................................ 13,451
(ii) See paragraph (b) of this example for character of income deemed distributed to A and section 661 for rules for computing the amount deductible by a trust for distributions to beneficiaries. Inasmuch as one-half of the dividends of the trust is deemed to be distributed to A, $25 of such distribution is deemed to be made from the dividend exclusion of $50, and the balance from dividends included in the gross income of the trust (that is, since the year 1954 is involved, $3,725 from dividends received on or before July 31, 1954, and $3,750 from dividends received after July 31, 1954). The trust is entitled to a dividend received credit attributable to the dividends of $3,750 received after July 31, 1954, which were not distributed to any beneficiary during the taxable year.
(2) 1955. (i) The tax liability of the trust for the taxable year 1955 is $8,189, computed as follows: Distributable net income under section 643(a) (paragraph $40,000
(a)(1) of this example).....................................Less amounts not includible in gross income:
(1) of this example).....................................Less amounts not includible in gross income:
Tax-exempt interest............................. $5,000
Dividend exclusion.............................. 50
-----------
5,050
------------
Distributable net income as adjusted..................... 34,950Add: Capital gains (long-term)............................... 10,000
------------
Total.................................................... 44,950Deductions:
Distributions to A.............................. $17,475
Capital gain deduction.......................... 5,000
Personal exemption.............................. 100
-----------
22,575
------------
Taxable income........................................... 22,375Alternative tax.............................................. 8,388Dividend received credit..................................... 199
------------
Tax liability............................................ 8,189
(ii) See paragraph (b) of this example for character of income deemed distributed to A and section 661 for rules for computing the amount deductible by a trust for distributions to beneficiaries. Inasmuch as one-half ($4,975) of the dividends of $9,950 ($10,000 less dividend exclusion of $50) included in the gross income of the trust is deemed distributed to A, the trust is entitled to a dividend received credit with respect to the dividends of $4,975 which were not distributed to any beneficiary during the taxable year.
(3) 1956 and 1957. The trust had no tax liability for the taxable years 1956 and 1957 since all of its income was distributed during such years.
(d) Accumulation distributions. (1) Accumulation distributions of $20,000 and $7,050, as defined in section 665(b), were made to B during the years 1956 and 1957, respectively, computed as shown below: ------------------------------------------------------------------------
1956 1957------------------------------------------------------------------------Distributable net income of the trust as computed $50,000 $45,000
under section 643(a).............................Less. Income currently distributable to A......... 25,000 22,500
---------------------
Balance of income............................. 25,000 22,500Other amounts distributed to B.................... 45,000 29,550
---------------------
Accumulation distributions to B............... 20,000 7,050------------------------------------------------------------------------
(2) B is deemed to have received one-half of each item of income entering into the computation of distributable net income (shown in paragraph (a)(1) of this example) for the years 1956 and 1957.
(3) The accumulation distribution for 1956 must first be allocated to the preceding taxable years as provided in section 666. After the application of the provisions of subpart D to the 1956 accumulation distribution and to the undistributed net incomes of the preceding taxable years, a similar allocation must be made of the 1957 accumulation distribution.
(e) Throwback of 1956 accumulation distribution to 1955. The accumulation distribution of $20,000 for 1956 must be allocated to the first preceding taxable year 1955, before allocation is made to the second preceding taxable year 1954.
(1) 1955 Undistributed net income. (i) The undistributed net income of the trust for 1955, determined as of the close of 1955, is $12,885, computed as follows:
Distributable net income as computed under section 643(a) $40,000
(paragraph (a)(1) of this example)Less:
Distributions to A.............................. $20,000
Taxes imposed on the trust...................... 7,115
-----------
27,115
------------
Undistributed net income as of the close of 12,885
1955.........................................
(ii) The taxes imposed on the trust of $7,115 are that portion of the taxes paid by the trust for 1955 which is attributable to the undistributed portion of distributable net income included in the taxable income of the trust (the ``balance'' in the computation below) and is determined as follows: Taxable income (paragraph (c)(2)(i) of this example.......... $22,375Capital gains allocable to corpus................. $10,000Less:
Capital gain deduction............... $5,000
Personal exemption................... 100
-----------
5,100
-----------Portion of taxable income allocable to corpus................ 4,900
------------
Balance.................................................. 17,475
============Total taxes paid by the trust................................ 8,189Taxes on income ($4,900) allocable to corpus................. 1,074
------------
Taxes imposed on the trust (section 665(c)).............. 7,115
(iii) The amount of $1,074 is the taxes which the trust would have paid for 1955 had all of the distributable net income been distributed during the year.
(2) Allocation of 1956 accumulation distribution to the preceding taxable year 1955. The portion of the 1956 accumulation distribution which is deemed under section 666(a) to be distributed to B on the last day of 1955 (the first preceding taxable year) is $12,885, an amount equal to the undistributed net income for 1955. An additional amount equal to the taxes imposed on the trust ($7,115) is, under section 666(b), also deemed to be distributed to B on the last day of 1955. Thus, a total of $20,000 ($12,885 plus $7,115) is deemed to be distributed to B on December 31, 1955, by reason of the allocation of the 1956 accumulation distribution to the first preceding taxable year. See paragraph (h) of this example for the treatment of the amount of $20,000 in the hands of B.
(3) Character of amounts deemed distributed. Inasmuch as one-half of the 1955 distributable net income of the trust as determined under section 643(a) was currently distributable to A and the balance of such income is deemed under section 666 to be distributed to B on December 31, 1955, the distribution to B is deemed to consist of one-half of each item of income entering into the computation of the 1955 distributable net income; that is, dividends of $5,000, rents of $7,500, taxable interest of $5,000, and tax-exempt interest of $2,500.
(4) Credit for taxes paid by the trust. The amount of the taxes for the year 1955 which may not be refunded or credited to the trust under section 667 and which is allowed as a credit against the tax of B for 1956 under section 668(b) is $7,115. See also paragraph (h)(3) of this example.
(5) Effect of application of provisions of subpart D to the year 1955. After the allocation of the 1956 accumulation distribution to the preceding taxable year 1955, the undistributed portion of the distributable net income, the undistributed net income, and the taxes imposed on the trust for 1955 are zero. The portion of the 1956 accumulation distribution which is unabsorbed by the 1955 undistributed net income is $7,115, determined as follows: 1956 accumulation distribution (paragraph (d)(1) of this $20,000
example)....................................................Less: Amount allocable to 1955............................... 12,885
------------
Balance allocable to second preceding taxable year 1954.. 7,115
(f) Throwback of 1956 accumulation distribution to 1954. The unabsorbed portion of the 1956 accumulation distribution of $7,115 is allocable to the second preceding taxable year 1954 and is treated under section 666 as a distribution to B on the last day of such year.
(1) 1954 Undistributed net income. (i) The undistributed net income of the trust for 1954, determined as of the close of 1954, is $14,155, computed as follows: Distributable net income as computed under section 643(a) $50,000
(paragraph (a)(1) of this example)..........................Less:
Distributions to A.............................. $25,000
Taxes imposed on the trust...................... 10,845
-----------
35,845
------------
Undistributed net income as of the close of 1954......... 14,155
(ii) The taxes imposed on the trust of $10,845 are that portion of the taxes paid by the trust for 1954 which is attributable to the undistributed portion of distributable net income included in the taxable income of the trust (the ``balance'' in the computation below in this subdivision) and is determined as follows: Taxable income (paragraph (c)(1)(i) of this example)......... $32,375Capital gains allocable to corpus................. $20,000Less:
Capital gain deduction............... $10,000
Personal exemption................... 100
-----------
10,100
-----------
Portion of taxable income allocable to corpus............ 9,900
------------
Balance.................................................. 22,475
============Total taxes paid by the trust................................ 13,451Taxes on income ($9,900) allocable to corpus................. 2,606
------------
Taxes imposed on the trust (section 665(c)).............. 10,845
(iii) The amount of $2,606 is the taxes which the trust would have paid for 1954 had all of the distributable net income been distributed during that year.
(2) Allocation of 1956 accumulation distribution to the second preceding taxable year 1954. Since the unabsorbed portion of the 1956 accumulation distribution of $7,115 is less than the 1954 undistributed net income of $14,155, the trust is deemed under section 666(c) to have also distributed an additional amount ($5,451) equal to a pro rata portion (7,115/14,155x$10,845) of the taxes imposed on the trust for 1954. Thus, a total of $12,566 ($7,115 plus $5,451) is deemed to be distributed to B on December 31, 1954, by reason of the throwback of the 1956 accumulation distribution. See paragraph (h) of this example for the treatment of the amount of $12,566 in the hands of B.
(3) Character of amounts deemed distributed to B. The amount of $12,566 which, under section 666, is deemed to be distributed to B on December 31, 1954, is deemed to be composed of the following items of income of the trust: Dividends, $3,770 (15,000/50,000x$12,566); rents, $5,026 (20,000/50,000x$12,566); taxable interest, $2,513 (10,000/50,000x$12,566); and tax-exempt interest, $1,257 (5,000/50,000x$12,566). One-half of the dividends of $3,770 is considered as distributed from the dividends received by the trust on or before July 31, 1954, of which $13 (3,770/15,000x$50) is deemed distributed from the dividends excluded under section 116, and the other half as distributed from the dividends received after July 31, 1954. Thus, of the total of $12,566 deemed distributed to B, $11,296 is considered as made from income included in the gross income of the trust and $1,270 from non-taxable income of the trust.
(4) Credit for taxes paid by the trust. The amount of the taxes for the year 1954 which may not be refunded or credited to the trust under section 667 and which is allowed as a credit against the tax of B for 1956 under section 668(b), because of the allocation of the 1956 accumulation distribution to 1954, is $5,401, computed as follows: Taxable income of the trust as of the close of 1954 $32,375
(paragraph (c)(1) of this example)..........................Less: Amount deemed distributed to B under section 666 from 11,296
the taxable income of the trust.............................
------------
Taxable income adjusted as of the close of 1956.......... 21,079
------------(Taxes on $21,079 (alternative tax).......................... $8,050Taxes on income allocable to corpus (subparagraph (1)(ii) of $2,606
this paragraph).............................................
------------
Taxes imposed on the trust determined as of the close of 5,444
1956....................................................
============Taxes imposed on the trust determined as of the close of 1954 $10,845Taxes imposed on the trust determined as of the close of 1956 5,444
------------
Amount of taxes allowed as a credit to B under section 5,401
668(b)..................................................
(5) Effect of application of provisions of subpart D to the year 1954. (i) The undistributed portion of the distributable net income of the trust for the year 1954, determined as of the close of 1956, is $12,434, computed as follows: Distributable net income (section 643(a)).................... $50,000Less:
Amount currently distributable to A............. $25,000
Amount deemed distributed to B under section 666 12,566
-------- 37,566
------------
Undistributed portion of distributable net income as of 12,434
the close of 1956.......................................
(ii) The amount of $12,434 is deemed to consist of dividends of $3,730, rents of $4,974, taxable interest of $2,487, and tax-exempt interest of $1,243, determined as follows: ----------------------------------------------------------------------------------------------------------------
Interest Interest
Dividends Rents (taxable) (exempt) Total----------------------------------------------------------------------------------------------------------------Trust income............................... $15,000 $20,000 $10,000 $5,000 \1\ $50,000
====================================================================Distributions:
To A..................................... 7,500 10,000 5,000 2,500 \2\ 25,000
To B..................................... 3,770 5,026 2,513 1,257 \3\ 12,566
====================================================================
Total.................................. 11,270 15,026 7,513 3,757 37,566
====================================================================Balance.................................... 3,730 4,974 2,487 1,243 12,434----------------------------------------------------------------------------------------------------------------\1\ See paragraph (a)(1) of this example.\2\ See paragraph (b) of this example.\3\ See paragraph (f)(3) of this example.
(iii) The undistributed net income of the trust for 1954, determined as of the close of 1956, is $6,990, computed as follows: Undistributed portion of distributable net income as of the $12,434
close of 1956..............................................Less: Taxes imposed on the trust determined as of the close 5,444
of 1956 (subparagraph (4) of this paragraph)...............
-----------
Undistributed net income as of the close of 1956.......... 6,990
(g) Throwback of 1957 accumulation distribution. Inasmuch as all of the income of the trust for the first preceding taxable year 1956 was distributed during such year and the trust had no undistributed net income for the second preceding taxable year 1955 after the application of subpart D to the accumulation distribution made during 1956, the 1957 accumulation distribution of $7,050 is allocable to the third preceding taxable year 1954. See paragraph (d)(1) of this example for computation of the accumulation distribution.
(1) Allocation of 1957 accumulation distribution to the preceding taxable year 1954. The portion of the 1957 accumulation distribution which is deemed under section 666(a) to be distributed to B on the last day of 1954 is $6,990, an amount equal to the undistributed net income of the trust for 1954, determined as of the close of 1956. An additional amount equal to the taxes imposed on the trust ($5,444), determined as of the close of 1956, is under section 666(b) also deemed to be distributed to B on the last day of 1954. See paragraph (f) (4) and (5) of this example. Thus, a total of $12,434 ($6,990 plus $5,444) is deemed to be distributed to B on December 31, 1954, by reason of the allocation of the 1957 accumulation distribution to the taxable year 1954. See paragraph (j) of this example for the treatment of the amount of $12,434 in the hands of B.
(2) Character of amounts deemed distributed. Inasmuch as the balance of the 1954 distributable net income of the trust is deemed under section 666 to be distributed to B on December 31, 1954, the distribution is deemed to consist of dividends of $3,730, rents of $4,974, taxable interest of $2,487, and tax-exempt interest of $1,243. See paragraph (f)(5)(ii) of this example.
(3) Credit for taxes paid by the trust. The amount of taxes for the year 1954 which may not be refunded or credited to the trust under section 667 and which is allowed as a credit against the tax of B under section 668(b) is $5,444, the amount of taxes imposed on the trust determined as of the close of 1956. See paragraph (f)(4) of this example.
(4) Effect of application of provisions of subpart D to the year 1954. After the allocation of the 1957 accumulation distribution to the preceding taxable year 1954, the undistributed portion of the distributable net income, the undistributed net income, and the taxes imposed on the trust for 1954 are zero. The balance of $60 ($7,050 less $6,990) of the 1957 accumulation distribution remaining after the allocation of the accumulation distribution to the year 1954, may not be allocated to the year 1953 since that year is not subject to the provisions of the Internal Revenue Code of 1954.
(h) Determination of B's tax liability; taxable year 1956--(1) Amount of trust income includible in gross income. (i) Of the amount of $45,000 distributed by the trust to B during the taxable year 1956, $25,000 is treated as a distribution out of trust income for that year within the meaning of section 662(a)(2), and $20,000 as an accumulation distribution within the meaning of section 665(b) (see paragraph (d) of this example). However, $12,885 plus taxes of $7,115 is deemed distributed to B on December 31, 1955, and $7,115 plus taxes of $5,451 on December 31, 1954, under section 666 by reason of the accumulation distribution made during 1956, and these amounts are includible in B's gross income for 1956 to the extent that they would have been includible in his gross income under section 662 (a)(2) and (b) for 1955 and 1954, respectively, had they been distributed on the last day of those years.
(1) Amount of trust income includible in gross income. (i) Of the amount of $45,000 distributed by the trust to B during the taxable year 1956, $25,000 is treated as a distribution out of trust income for that year within the meaning of section 662(a)(2), and $20,000 as an accumulation distribution within the meaning of section 665(b) (see paragraph (d) of this example). However, $12,885 plus taxes of $7,115 is deemed distributed to B on December 31, 1955, and $7,115 plus taxes of $5,451 on December 31, 1954, under section 666 by reason of the accumulation distribution made during 1956, and these amounts are includible in B's gross income for 1956 to the extent that they would have been includible in his gross income under section 662 (a)(2) and (b) for 1955 and 1954, respectively, had they been distributed on the last day of those years.
(i) Of the amount of $45,000 distributed by the trust to B during the taxable year 1956, $25,000 is treated as a distribution out of trust income for that year within the meaning of section 662(a)(2), and $20,000 as an accumulation distribution within the meaning of section 665(b) (see paragraph (d) of this example). However, $12,885 plus taxes of $7,115 is deemed distributed to B on December 31, 1955, and $7,115 plus taxes of $5,451 on December 31, 1954, under section 666 by reason of the accumulation distribution made during 1956, and these amounts are includible in B's gross income for 1956 to the extent that they would have been includible in his gross income under section 662 (a)(2) and (b) for 1955 and 1954, respectively, had they been distributed on the last day of those years.
(ii) The amounts distributed to B out of trust income for the year 1956, and the amounts deemed distributed out of income for the preceding taxable years 1955 and 1954 have the following character for the purpose of determining the amount includible in B's gross income for 1956: ----------------------------------------------------------------------------------------------------------------
Interest Interest
Year Dividends Rents (taxable) (exempt) Total----------------------------------------------------------------------------------------------------------------1956....................................................... $5,000 $10,000 $7,500 $2,500 \1\
$25,0001955....................................................... 5,000 7,500 5,000 2,500 \2\
20,0001954....................................................... 3,770 5,026 2,513 1,257 \3\
12,566
----------------------------------------------------Total...................................................... 13,770 22,526 15,013 6,257 57,566----------------------------------------------------------------------------------------------------------------\1\ See paragraph (d)(2) of this example.\2\ See paragraph (e)(3) of this example.\3\ See paragraph (f)(3) of this example. Thus, B will include in gross income for 1956 dividends of $13,770 (subject to the dividend exclusion), rents of $22,526, and taxable interest of $15,013, and will exclude the tax-exempt interest of $6,257.
(2) Computation of tax. (i) For the purpose of computing B's tax liability, it is assumed that he was single during the taxable years 1954, 1955, and 1956, and that his taxable income (derived from salary) for each of the years 1954 and 1955 amounted to $13,400 on which a tax of $4,002 was paid for each year. It is also assumed that his income (other than distributions from the trust) for 1956 was $15,000 derived from salary, and he had allowable deductions of $10,600, which included the deduction for personal exemption.
(i) For the purpose of computing B's tax liability, it is assumed that he was single during the taxable years 1954, 1955, and 1956, and that his taxable income (derived from salary) for each of the years 1954 and 1955 amounted to $13,400 on which a tax of $4,002 was paid for each year. It is also assumed that his income (other than distributions from the trust) for 1956 was $15,000 derived from salary, and he had allowable deductions of $10,600, which included the deduction for personal exemption.
(ii) The computation of the tax for the taxable year 1956 attributable to the section 666 amounts which are included in B's gross income for such year, as provided in paragraph (a)(1) of Sec. 1.668(a)-4, is as follows: ------------------------------------------------------------------------
(1) (2)
Section Section
666 666
amounts amounts
excluded included------------------------------------------------------------------------Salary.......................................... $15,000 $15,000Income from trust:
Dividends ($50 excluded)...................... 4,950 13,720
Rents......................................... 10,000 22,526
Taxable interest.............................. 7,500 15,013
-----------------------
Total....................................... 37,450 66,259Less: Allowable deductions...................... 10,600 10,600
-----------------------
Taxable income.............................. 26,850 55,659
=======================
Total tax....................................... 11,267 31,064Less: Dividend received credit.................. 198 475
-----------------------
Tax liability............................... $11,069 30,589Tax on income from which section 666 amounts are .......... 11,069
excluded.......................................
-----------------------
1956 tax attributable to section 666 amounts .......... 19,520------------------------------------------------------------------------ Only that portion of the dividends received by the trust after July 31, 1954, and deemed distributed to B under section 666, on the last day of such year is included in computing the dividend received credit shown in column (2). See paragraph (f)(3) of this example.
(iii) The computation of the taxes for the preceding taxable years attributable to the section 666 amounts which are deemed distributed by the trust on the last day of these years, as provided in paragraph (a)(2) of Sec. 1.668(a)-4, is as follows: ------------------------------------------------------------------------
Preceding taxable
years
-----------------------
Second
First 1955 1954------------------------------------------------------------------------Taxable income previously reported.............. $13,400 $13,400Section 666 amounts:
Dividends ($50 excluded)...................... 4,950 3,720
Rents......................................... 7,500 5,026
Taxable interest.............................. 5,000 2,513
-----------------------
Taxable income as adjusted.................. 30,850 24,659
=======================Total tax....................................... 13,747 9,949Less: Dividend received credit.................. 198 75
-----------------------
Balance of tax.............................. 13,549 9,874Tax liability................................... 4,002 4,002
-----------------------
Tax attributable to section 666 amounts..... 9,547 5,872------------------------------------------------------------------------ Only that portion ($1,885) of the dividends received by the trust after July 31, 1954, and deemed distributed under section 666 on the last day of that year, is included in computing the dividend received credit of $75 for the year 1954. See paragraph (f)(3) of this example.
(iv) Inasmuch as the aggregate of the taxes of $15,419 ($9,547 plus $5,872) attributable to the section 666 amounts as determined for the preceding taxable years is less than the tax of $19,520 determined for the taxable year 1956, the amount of $15,419 shall be added to the tax computed for 1956 without including the section 666 amounts. Thus, B's tax liability for 1956 is $26,488 ($11,069 plus $15,419).
(3) Credits against the tax. B is allowed under section 668(b) a credit of $12,516 ($5,401 for 1954 and $7,115 for 1955) against his 1956 tax liability for the taxes paid by the trust for the preceding taxable years and which may not be refunded or credited to the trust under section 667. See paragraphs (e)(4) and (f)(4) of this example.
(i) [Reserved]
(j) Taxable year 1957--(1) Amount of trust income includible in gross income. (i) Of the amount of $29,550 distributed by the trust to B during the taxable year 1957, $22,500 is treated as a distribution out of trust income for that year within the meaning of section 662(a)(2), and $7,050 as an accumulation distribution within the meaning of section 665(b) (see paragraph (d) of this example). However, $6,990 plus taxes of $5,444 is deemed distributed to B on December 31, 1954, under section 666 by reason of the accumulation distribution made during 1957, and that amount is includible in B's gross income for 1957, to the extent that it would have been includible in his gross income under section 662 (a)(2) and (b) for 1954, had it been distributed on the last day of that year.
(1) Amount of trust income includible in gross income. (i) Of the amount of $29,550 distributed by the trust to B during the taxable year 1957, $22,500 is treated as a distribution out of trust income for that year within the meaning of section 662(a)(2), and $7,050 as an accumulation distribution within the meaning of section 665(b) (see paragraph (d) of this example). However, $6,990 plus taxes of $5,444 is deemed distributed to B on December 31, 1954, under section 666 by reason of the accumulation distribution made during 1957, and that amount is includible in B's gross income for 1957, to the extent that it would have been includible in his gross income under section 662 (a)(2) and (b) for 1954, had it been distributed on the last day of that year.
(i) Of the amount of $29,550 distributed by the trust to B during the taxable year 1957, $22,500 is treated as a distribution out of trust income for that year within the meaning of section 662(a)(2), and $7,050 as an accumulation distribution within the meaning of section 665(b) (see paragraph (d) of this example). However, $6,990 plus taxes of $5,444 is deemed distributed to B on December 31, 1954, under section 666 by reason of the accumulation distribution made during 1957, and that amount is includible in B's gross income for 1957, to the extent that it would have been includible in his gross income under section 662 (a)(2) and (b) for 1954, had it been distributed on the last day of that year.
(ii) The amounts deemed distributed to B out of trust income for the year 1957 and the preceding taxable year 1954 are deemed to have the following character for the purpose of determining the amount includible in B's gross income for 1957: ----------------------------------------------------------------------------------------------------------------
Interest Interest
Year Dividends Rents (taxable) (exempt) Total----------------------------------------------------------------------------------------------------------------1957........................................................ $5,000 $7,500 $7,500 $2,500 \1\
$22,5001954........................................................ 3,730 4,974 2,487 1,243 \2\
12,434
---------------------------------------------------Total....................................................... 8,730 12,474 9,987 3,743 34,934----------------------------------------------------------------------------------------------------------------\1\ See paragraph (d)(2) of this example.\2\ See paragraph (g)(2) of this example. Thus, B will include in gross income for the year 1957 dividends of $8,730 (subject to the dividend exclusion), rents of $12,474, and taxable interest of $9,987 and will exclude the tax-exempt interest of $3,743.
(2) Computation of tax. (i) For the purpose of computing B's tax liability for 1957, it is assumed that he was single for the entire year and had income (other than distributions from the trust) of $15,000 from salary. Also, he had allowable deductions of $8,100, which included the deductions for personal exemption.
(i) For the purpose of computing B's tax liability for 1957, it is assumed that he was single for the entire year and had income (other than distributions from the trust) of $15,000 from salary. Also, he had allowable deductions of $8,100, which included the deductions for personal exemption.
(ii) The computation of the tax for the taxable year 1957 attributable to the section 666 amounts which are included in B's gross income for that year, as provided in paragraph (a)(1) of Sec. 1.668(a)-4, is as follows: ------------------------------------------------------------------------
Section Section
666 666
amounts amounts
excluded included------------------------------------------------------------------------Salary.......................................... $15,000 $15,000Trust income:
Dividends ($50 excluded)...................... 4,950 8,680
Rents......................................... 7,500 12,474
Taxable interest.............................. 7,500 9,987
-----------------------
Total....................................... 34,950 46,141Less: Allowable deductions 8,100 8,100
-----------------------
Taxable income.............................. 26,850 38,041
=======================
Total tax..................................... 11,267 18,388Less: Dividends received credit................. 198 275
-----------------------
Tax liability............................... 11,069 18,113Tax on income from which section 666 amounts are .......... 11,069
excluded.......................................
-----------------------
1957 tax attributable to section 666 amounts .......... 7,044------------------------------------------------------------------------ See explanation following computation in paragraph (h)(2)(ii) of this example with respect to the computation of the dividend received credit on dividends received by the trust in 1954.
(iii) The amount of tax, computed at 1954 rates, attributable to the section 666 amounts which are deemed to have been distributed by the trust on the last day of 1954, is $6,939, computed as follows: 1954 taxable income as adjusted (paragraph (h)(2)(iii) of $24,659
this example)..............................................Section 666 amounts:
Dividends................................................. 3,730
Rents..................................................... 4,974
Taxable interest.......................................... 2,487
-------------
Taxable income as adjusted.............................. 35,850
=============Total tax................................................... 16,963Less: Dividends received credit............................. 150
-------------
Balance of tax.......................................... 16,813Tax liability for 1954.......................... $4,002Tax attributable to 1956 accumulation 5,872
distribution this example).....................
------------
9,874
-------------
Tax attributable to the section 666 amounts distributed in 6,939
1957.....................................................
Only that portion ($3,750) of the dividends received by the trust after July 31, 1954, and deemed distributed under section 666 on the last day of that year, is included in computing the dividend received credit of $150. See paragraphs (f)(3) and (g)(2) of this example.
(iv) Inasmuch as the tax of $6,939 attributable to the section 666 amounts as determined for the preceding taxable year 1954 is less than the tax of $7,044 attributable to these amounts for the year 1957, the amount of $6,939 shall be added to the tax computed for 1957 without including in gross income the section 666 amounts. Thus, B's tax liability for 1957 is $18,008 ($11,069 plus $6,939).
(3) Credit against the tax. B is allowed under section 668(b) a credit of $5,444 against his 1957 tax liability for the balance of the taxes paid by the trust for 1954 and which may not be refunded or credited to the trust under section 667. See paragraph (g)(3) of this example. (Sec. 669(a) as amended by sec. 331(a), Tax Reform Act 1969 (83 Stat. 592)) [T.D. 6500, 25 FR 11814, Nov. 26, 1960, as amended by T.D. 6989, 34 FR 738, Jan. 17, 1969] Sec. 1.669(a)-1A Amount allocated.
(a) In general. After a trust has distributed all of its undistributed net income, the rules concerning the treatment of capital gain distributions (prescribed under section 669) may become applicable to an accumulation distribution. This section prescribes rules to determine from which years capital gain distributions are considered to be made. For the definition of ``capital gain distribution,'' see Sec. 1.665(g)-1A. Section 669 does not apply to a trust that has distributed all of its income currently since its inception. See Sec. 1.668(a)-1A(c). Capital gain retains its character in the hands of the beneficiary. See Sec. 1.669(f)-1A. A capital gain distribution to more than one beneficiary will be allocated among them. See Sec. 16.668(a)-2A.
(b) First-in, first-out rule. A capital gain distribution is allocated to the preceding taxable years of the trust (as defined in Sec. 1.665(e)-1A(a)(1)(iii)), according to the undistributed capital gain of the trust for such years. For this purpose, a capital gain distribution is first allocated to the earliest such preceding taxable year in which there is undistributed capital gain and shall then be allocated in turn, beginning with the next earliest, to any remaining preceding taxable years of the trust. The portion of the capital gain distribution allocated to the earliest preceding taxable year is the amount of undistributed capital gain for that preceding taxable year. The portion of the capital gain distribution allocated to any preceding taxable year subsequent to the earliest such preceding taxable year is the excess of the capital gain distribution over the aggregate of the undistributed capital gain for all earlier preceding taxable years. See paragraph (c) of this section for adjustments to undistributed capital gain for prior distributions.
(c) Reduction of undistributed capital gain for prior capital gain distributions. For the purposes of allocating to any preceding taxable year a capital gain distribution of the taxable year, the undistributed capital gain of such preceding taxable year is reduced by the amount from such year deemed distributed in any capital gain distribution made in any taxable year intervening between such preceding taxable year and the taxable year. Accordingly, for example, if a trust subject to the capital gain throwback has no undistributed net income but has undistributed capital gain for 1974, and makes capital gain distributions during the taxable years 1978 and 1979, then in determining that part of the 1979 capital gain distribution that is thrown back to 1974, the undistributed capital gain for 1974 is reduced by the amount of such undistributed capital gain for 1974 deemed distributed in the 1978 capital gain distribution.
(d) Rule when no undistributed capital gain. If, before the application of the provisions of subpart D to a capital gain distribution for the taxable year, there is no undistributed capital gain for a preceding taxable year, then no portion of the capital gain distribution is deemed distributed on the last day of such preceding taxable year. Thus, for example, if a capital gain distribution is made during the taxable year 1975 from a trust whose earliest preceding taxable year is taxable year 1970, and the trust had no undistributed capital gain for 1970, then no portion of the 1975 capital gain distribution is deemed distributed on the last day of 1970.
(e) Example. The provisions of this section may be illustrated by the following example:
Example. In 1977, a trust reporting on the calendar year basis makes a capital gain distribution of $33,000. In 1969, the trust had $6,000 of undistributed capital gain; in 1970, $4,000; in 1971, none; in 1972, $7,000; in 1973, $5,000; in 1974, $8,000; in 1975, $6,000; in 1976, $4,000; and $6,000 in 1977. The capital gain distribution is deemed distributed $6,000 in 1969, $4,000 in 1970, none in 1971, $7,000 in 1972, $5,000 in 1973, $8,000 in 1974, and $3,000 in 1975. [T.D. 7204, 37 FR 17153, Aug. 25, 1972] Sec. 1.669(b)-1A Tax on distribution.
(a) In general. The partial tax imposed on the beneficiary by section 668(a)(3) shall be the lesser of:
(1) The tax computed under paragraph (b) of this section (the ``exact'' method), or
(2) The tax computed under paragraph (c) of this section (the ``short-cut'' method), except as provided in Sec. 1.669(c)-3A (relating to failure to furnish proper information) and paragraph (d) of this section (relating to disallowance of short-cut method). For purposes of this paragraph, the method used in the return shall be accepted as the method that produces the lesser tax. The beneficiary's choice of the two methods is not dependent upon the method that he uses to compute his partial tax imposed by section 668(a)(2).
(b) Computation of partial tax by the exact method. The partial tax referred to in paragraph (a)(1) of this section is computed as follows:
(1) First, compute the tax attributable to the section 669 amounts for each of the preceding taxable years. For purposes of this paragraph, the ``section 669 amounts'' for a preceding taxable year are the amounts deemed distributed under section 669(a) on the last day of such preceding taxable year, plus the amount of taxes deemed distributed on such day under section 669 (d) or (e). The tax attributable to such amounts in each prior taxable year of the beneficiary is the difference between the tax for such year computed with the inclusion of the section 669 amounts in the beneficiary's gross income and the tax for such year computed with the inclusion of them in such gross income. Tax computations for each such year shall reflect a taxpayer's marital, dependency, exemption, and filing status for such year. To the extent the undistributed capital gain of a trust deemed distributed in a capital gain distribution includes amounts received as a capital gain distribution from another trust, for purposes of this paragraph they shall be considered as amounts deemed distributed by the trust under section 669(a) on the last day of each of the preceding taxable years in which such amounts were accumulated by such other trust. For example, assume trust Z, a calendar year trust received in its taxable year 1975 a capital gain distribution from trust Y, a calendar year trust, that included undistributed capital gain of trust Y for the taxable years 1972, 1973, and 1974. To the extent a capital gain distribution made by trust Z in its taxable year 1976 includes such undistributed capital gain, it shall be considered a capital gain distribution by trust Z in the taxable year 1976 and under section 669(a) will be deemed distributed on the last day of the preceding taxable years 1972, 1973, and 1974.
(2) From the sum of the taxes for the prior taxable years attributable to the section 669(a) amounts (computed in accordance with subparagraph (1) of this paragraph), subtract so much of the amount of taxes deemed distributed to the beneficiary under Sec. Sec. 1.669(d)-1A and 1.669(e)-1A as does not exceed such sum. The resulting amount, if any, is the partial tax on the beneficiary, computed under the exact method, for the taxable year in which the capital gain distribution is paid, credited, or required to be distributed to the beneficiary.
(c) Computation of tax by the short-cut method. (1) The tax referred to in paragraph (a)(2) of this section is computed as follows:
(1) The tax referred to in paragraph (a)(2) of this section is computed as follows:
(i) First, determine the number of preceding taxable years of the trust on the last day of which an amount is deemed under section 669(a) to have been distributed. For purposes of the preceding sentence, the preceding taxable years of a trust that has received a capital gain distribution from another trust shall include the taxable years of such other trust in which an amount was deemed distributed in such capital gain distribution. For example, assume trust Z, a calendar year trust, received in its taxable year 1975 a capital gain distribution from trust Y, a calendar year trust, that included undistributed capital gain of trust Y for the taxable years 1972, 1973, and 1974. To the extent a capital gain distribution made by trust Z in its taxable year 1976 includes such undistributed capital gain, it shall be considered a capital gain distribution by trust Z in the taxable year 1976 and under section 669(a) will be deemed distributed on the last day of the preceding taxable years 1972, 1973, and 1974. For purposes of this subparagraph, such number of preceding taxable years of the trust shall not include any preceding taxable year of the trust in which the undistributed capital gain deemed distributed is less than 25 percent of (a) the total amounts deemed under section 669(a) to be undistributed capital gain from preceding taxable years, divided by (b) the number of such preceding taxable years of the trust on the last day of which an amount is deemed under section 669(a) to have been distributed without application of this sentence. For example, assume that a capital gain distribution of $90,000 made to a beneficiary in 1979 is deemed distributed in the amounts of $29,000 in each of the years 1972, 1973, and 1974, and $3,000 in 1975. The number of preceding taxable years on the last day of which an amount was deemed distributed without reference to the second sentence of this subparagraph is 4. However, the distribution deemed made in 1975 ($3,000) is less than $5,625, which is 25 percent of (a) the total undistributed capital gain deemed distributed under section 669(a) ($90,000) divided by (b) the number of such preceding taxable years (4), or $22,500. Therefore, for purposes of this subparagraph, the capital gain distribution is deemed distributed in only 3 preceding taxable years (1972, 1973, and 1974).
(ii) Second, divide the amount (representing the capital gain distribution and taxes deemed distributed) required under section 668(a) to be included in the income of the beneficiary for the taxable year by the number of preceding taxable years of the trust on the last day of which an amount is deemed under section 669(a) to have been distributed (determined as provided in subdivision (i) of this paragraph). The amount determined under this subdivision, including taxes deemed distributed, consists of the same proportion of long-term and short-term capital gain as the total of each type of capital gain deemed distributed in the capital gain distribution bears to the total undistributed capital gain from such preceding taxable years deemed distributed in the capital gain distribution. For example, assume that an amount of $50,000 is deemed distributed under section 669(a) from undistributed capital gain of 5 preceding taxable years of the trust, and consists of $30,000 of long-term capital gain and $20,000 of short-term capital gain. Taxes attributable to such amounts in the amount of $10,000 are also deemed distributed. The amount determined under this subdivision, $12,000 ($50,000 income plus $10,000 tax, divided by 5 years), is deemed to consist of $7,200 of long-term capital gain and $4,800 in short-term capital gain.
(iii) Third, compute the tax of the beneficiary for each of the 3 taxable years immediately preceding the year in which the capital gain distribution is paid, credited, or required to be distributed to him,
(a) With the inclusion in gross income of the beneficiary for each of such 3 years of the amount determined under subdivision (ii) of this subparagraph, and
(b) Without such inclusion. The difference between the amount of tax computed under (a) of this subdivision for each year and the amount computed under (b) of this subdivision for that year is the additional tax resulting from the inclusion in gross income for that year of the amount determined under subdivision (ii) of this subparagraph.
(iv) Fourth, add the additional taxes resulting from the application of subdivision (iii) of this subparagraph and then divide this amount by 3.
(v) Fifth, the resulting amount is then multiplied by the number of preceding taxable years of the trust on the last day of which an amount is deemed under section 669(a) to have been distributed (previously determined under subdivision (i) of this subparagraph).
(vi) The resulting amount, less so much of the amount of taxes deemed distributed to the beneficiary under Sec. Sec. 1.669(d)-1A and 1.669(e)-1A as does not exceed such resulting amount, is the tax under the short-cut method provided in section 669(b)(1)(B).
(2) See Sec. 1.668(b)-1A(c) for examples of the short-cut method in the context of an accumulation distribution.
(d) Disallowance of short-cut method. If, in any prior taxable year of the beneficiary in which any part of the capital gain distribution is deemed to have been distributed under section 669(a) to such beneficiary, any part of prior capital gain distributions by each of two or more other trusts is deemed under section 669(a) to have been distributed to such beneficiary, then the short-cut method under paragraph (c) of this section may not be used and the partial tax imposed by section 668(a)(3) shall be computed only under the exact method under paragraph (b) of this section. For example, assume that, in 1978, trust X makes a capital gain distribution to A, who is on the calendar year basis, and part of the distribution is deemed under section 669(a) to have been distributed on March 31, 1974. In 1977, A had received a capital gain distribution from both trust Y and trust Z. Part of the capital gain distribution from trust Y was deemed under section 669(a) to have been distributed to A on June 30, 1974, and part of the capital gain distribution from trust Z was deemed under section 669(a) to have been distributed to A on December 31, 1974. Because there were portions of capital gain distributions from two other trusts deemed distributed within the same prior taxable year of A (1974), the 1978 capital gain distribution from trust X may not be computed under the short-cut method provided in paragraph (c) of this section. Therefore the exact method under paragraph (b) of this section must be used to compute the tax imposed by section 668(a)(3). [T.D. 7204, 37 FR 17153, Aug. 25, 1972] Sec. 1.669(c)-1A Special rules applicable to section 669.
(a) Effect of other distributions. The income of the beneficiary, for any of his prior taxable years for which a tax is being recomputed under Sec. 1.669(b)-1A, shall include any amounts of prior accumulation distributions (including prior capital gain distributions) deemed distributed under sections 666 and 669 in such prior taxable year. For purposes of the preceding sentence, a prior accumulation distribution is a distribution from the same or another trust which was paid, credited, or required to be distributed in a prior taxable year of the beneficiary. The term prior accumulation distribution also includes accumulation distributions of the same or other trusts which were distributed to the beneficiary in the same taxable year. The term ``prior capital gain distribution'' also includes capital gain distributions of other trusts which were paid, credited, or required to be distributed to the beneficiary in the same taxable year and which the beneficiary has determined under paragraph (b) of this section to treat as having been distributed before the capital gain distribution for which tax is being computed under Sec. 1.669(b)-1A.
(b) Multiple distributions in the same taxable year. For purposes of paragraph (a) of this section, capital gain distributions made from more than one trust in the same taxable year of the beneficiary, regardless of when in the taxable year they were actually made, shall be treated as having been made consecutively, in whichever order the beneficiary may determine. However, the beneficiary must treat them as having been made in the same order for the purpose of computing the partial tax on the several capital gain distributions. The beneficiary shall indicate the order he has determined to deem the capital gain distributions to have been received by him on his return for the taxable year. A failure by him so to indicate, however, shall not affect his right to make such determination. The purpose of this rule is to assure that the tax resulting from the later (as so deemed under this paragraph) distribution is computed with the inclusion of the earlier distribution in the taxable base and that the tax resulting from the earlier (as so deemed under this paragraph) distribution is computed with the later distribution excluded from the taxable base.
(c) Rule when beneficiary not in existence on the last day of a taxable year. If a beneficiary was not in existence on the last day of a preceding taxable year of the trust with respect to which a distribution is deemed made under section 669(a), it shall be assumed, for purposes of the computations under paragraphs (b) and (c) of Sec. 1.669(b)-1A, that the beneficiary:
(1) Was in existence on such last day,
(2) Was a calendar year taxpayer,
(3) Had no gross income other than the amounts deemed distributed to him from such trust in his calendar year in which such last day occurred and from all other trusts from which amounts are deemed to have been distributed to him in such calendar year,
(4) If an individual, was unmarried and had no dependents,
(5) Had no deductions other than the standard deduction, if applicable, under section 141 for such calendar year, and
(6) Was entitled to the personal exemption under section 151 or 642(b). For example, assume that part of a capital gain distribution made in 1980 is deemed under section 669(a) to have been distributed to the beneficiary, A, in 1973. $10,000 of a prior accumulation distribution was deemed distributed in 1973. A was born on October 9, 1975. It will be assumed for purposes of Sec. 1.669(b)-1A that A was alive in 1973, was on the calendar year basis, had no income other than (i) the $10,000 from the accumulation distribution deemed distributed in 1973 and (ii) the part of the 1980 distribution deemed distributed in 1973, and had no deductions other than the personal exemption provided in section 151. If A were a trust or estate created after 1973, the same assumptions would apply, except that the trust or estate would not be entitled to the standard deduction and would receive the personal exemption provided under section 642(b) in the same manner as allowed under such section for A's first actual taxable year.
(d) Examples. The provisions of paragraphs (a) and (b) of this section may be illustrated by the following examples:
Example 1. In 1978, trust X made a capital gain distribution to A, a calendar year taxpayer, of which $3,000 was deemed to have been distributed in 1974. In 1980, trust X makes another capital gain distribution to A, $10,000 of which is deemed under section 669(a) to have been distributed in 1974. Also in 1980, trust Y makes a capital gain distribution to A, of which $5,000 is deemed under section 669(a) to have been distributed in 1974. A determines to treat the 1980 distribution from trust Y as having been made prior to the 1980 distribution from trust X. In computing the tax on the 1980 trust Y distribution, A's gross income for 1974 includes (i) the $3,000 deemed distributed from the 1978 distribution, and (ii) the $5,000 deemed distributed in 1974 from the 1980 Trust Y capital gain distribution. To compute A's tax under the exact method for 1974 on the $10,000 from the 1980 trust X capital gain distribution deemed distributed in 1974. A's gross income for 1974 includes (i) the $10,000, (ii) the $3,000 previously deemed distributed in 1974 from the 1978 trust X capital gain distribution, and (iii) the $5,000 deemed distributed in 1974 from the 1980 trust Y capital gain distribution.
Example 2. In 1978, trust T makes a capital gain distribution to B, a calendar year taxpayer. Determination of the tax on the distribution under the short-cut method requires the use of B's gross income for 1975, 1976, and 1977. In 1977, B received an accumulation distribution from trust U, of which $2,000 was deemed to have been distributed in 1975, and $3,000 in 1976. B's gross income for 1975, for purposes of using the short-cut method to determine the tax from the trust T capital gain distribution, will be deemed to include the $2,000 deemed distributed in 1975 by trust U, and his gross income for 1976 will be deemed to include the $3,000 deemed distributed by trust U in 1976. [T.D. 7204, 37 FR 17155, Aug. 25, 1972] Sec. 1.669(c)-2A Computation of the beneficiary's income and tax fora prior taxable year.
(a) Basis for computation. (1) The beneficiary's income and tax paid for any prior taxable year for which a recomputation is involved under either the exact method or the short-cut method shall be determined by reference to the information required to be furnished by him under Sec. 1.669(c)-3A(a). The gross income, related deductions, and taxes paid for a prior taxable year of the beneficiary as finally determined shall be used for recomputation purposes. The term as finally determined shall have the same meaning for purposes of this section as in Sec. 1.668(b)-3A(a).
(1) The beneficiary's income and tax paid for any prior taxable year for which a recomputation is involved under either the exact method or the short-cut method shall be determined by reference to the information required to be furnished by him under Sec. 1.669(c)-3A(a). The gross income, related deductions, and taxes paid for a prior taxable year of the beneficiary as finally determined shall be used for recomputation purposes. The term as finally determined shall have the same meaning for purposes of this section as in Sec. 1.668(b)-3A(a).
(2) If any computations rely on the beneficiary's return for a prior taxable year for which the applicable period of limitations on assessment under section 6501 has expired, and such return shows a mathematical error on its face which resulted in the wrong amount of tax being paid for such year, the determination of both the tax for such year computed with the inclusion of the section 669 amounts in the beneficiary's gross income, and the tax for such year computed without including such amounts in such gross income, shall be based upon the return after the correction of such mathematical errors.
(b) Effect of allocation of undistributed capital gain on items based on amount of income and with respect to a net operating loss, a charitable contributions carryover, or a capital loss carryover. (1) In computing the tax for any taxable year under either the exact method or the short-cut method, any item which depends upon the amount of gross income, adjusted gross income, or taxable income shall be recomputed to take into consideration the amount of undistributed capital gain allocated to such year. For example, if $2,000 of undistributed long-term capital gain is allocated to 1970, adjusted gross income for 1970 is increased from $5,000 to $6,000. The allowable 50 percent charitable deduction under section 170(b)(1)(A) is then increased and the amount of the nondeductible medical expenses under section 213 (3 percent of adjusted gross income) is also increased.
(1) In computing the tax for any taxable year under either the exact method or the short-cut method, any item which depends upon the amount of gross income, adjusted gross income, or taxable income shall be recomputed to take into consideration the amount of undistributed capital gain allocated to such year. For example, if $2,000 of undistributed long-term capital gain is allocated to 1970, adjusted gross income for 1970 is increased from $5,000 to $6,000. The allowable 50 percent charitable deduction under section 170(b)(1)(A) is then increased and the amount of the nondeductible medical expenses under section 213 (3 percent of adjusted gross income) is also increased.
(2) In computing the tax attributable to the undistributed capital gain deemed distributed to the beneficiary in any of his prior taxable years under either the exact method or the short-cut method, the effect of amounts of undistributed capital gain on a net operating loss carryback or carryover, a charitable contributions carryover, or a capital loss carryback or carryover, shall be taken into account. In determining the amount of tax attributable to such deemed distribution, a computation shall also be made for any taxable year which is affected by a net operating loss carryback or carryover, by a charitable contributions carryover, or by a capital loss carryback or carryover determined by reference to the taxable year to which amounts are allocated under either method and which carryback or carryover is reduced or increased by such amounts so allocated. [T.D. 7204, 37 FR 17155, Aug. 25, 1972] Sec. 1.669(c)-3A Information requirements with respect to beneficiary.
(a) Information to be supplied by beneficiary--(1) Use of exact method. The beneficiary must supply the information required by subparagraph (3) of Sec. 1.668(b)-4A(a) for any prior taxable year for which a recomputation is required under either the exact method or the short-cut method. Such information shall be filed with the beneficiary's return for the year in which the tax under section 668(a)(3) is imposed.
(1) Use of exact method. The beneficiary must supply the information required by subparagraph (3) of Sec. 1.668(b)-4A(a) for any prior taxable year for which a recomputation is required under either the exact method or the short-cut method. Such information shall be filed with the beneficiary's return for the year in which the tax under section 668(a)(3) is imposed.
(2) Failure to furnish. If the beneficiary fails to furnish the information required by this paragraph for any prior year involved in the exact method, he may not use such method and the tax computed under paragraph (c) of Sec. 1.669(b)-1A (the short-cut method) shall be deemed to be the amount of partial tax imposed by section 668(a)(3). See, however, paragraph (b) of this section for an exception to this rule where the short-cut method is not permitted. If he cannot furnish the information required for a prior year involved in the short-cut method, such year will be recomputed on the basis of the best information available.
(b) Exception. If, by reason of Sec. 1.669(b)-1A(e), the beneficiary may not compute the partial tax on the capital gain distribution under Sec. 1.669(b)-1A(c) (the short-cut method), the provisions of subparagraph (2) of paragraph (a) of this section shall not apply. In such case, if the beneficiary fails to provide the information required by Sec. 1.668(b)-4A(a)(3) for any prior taxable year, the district director shall, by utilizing whatever information is available to him (including information supplied by the beneficiary), determine the beneficiary's income and related expenses for such prior taxable year. [T.D. 7204, 37 FR 17156, Aug. 25, 1972] Sec. 1.669(d)-1A Total taxes deemed distributed.
(a) If a capital gain distribution is deemed under Sec. 1.669(a)-1A to be distributed on the last day of a preceding taxable year and the amount is not less than the undistributed capital gain for such preceding taxable year, then an additional amount equal to the ``taxes imposed on the trust attributable to the undistributed capital gain'' (as defined in Sec. 1.665(d)-1A(c)) for such preceding taxable year is also deemed to have been properly distributed. For example, assume a trust has no distributable net income and has undistributed capital gain of $18,010 for the taxable year 1974. The taxes imposed on the trust attributable to the undistributed capital gain are $2,190. During the taxable year 1977, a capital gain distribution of $18,010 is made to the beneficiary which is deemed under Sec. 1.669(a)-1A to have been distributed on the last day of 1974. The 1977 capital gain distribution is not less than the 1974 undistributed capital gain. Accordingly, taxes of $2,190 imposed on the trust attributable to the undistributed capital gain for 1974 are also deemed to have been distributed on the last day of 1974. Thus, a total of $20,200 will be deemed to have been distributed on the last day of 1974.
(b) For the purpose of paragraph (a) of this section, the undistributed capital gain of any preceding taxable year and the taxes imposed on the trust for such preceding taxable year attributable to such undistributed capital gain are computed after taking into account any capital gain distributions of taxable years intervening between such preceding taxable year and the taxable year. See paragraph (c) of Sec. 1.669(a)-1A. [T.D. 7204, 37 FR 17156, Aug. 25, 1972] Sec. 1.669(e)-1A Pro rata portion of taxes deemed distributed.
(a) If a capital gain distribution is deemed under Sec. 1.669(a)-1A to be distributed on the last day of a preceding taxable year and the amount is less than the undistributed capital gain for such preceding taxable year, then an additional amount is also deemed to have been properly distributed. The additional amount is equal to the ``taxes imposed on the trust attributable to the undistributed capital gain'' (as defined in Sec. 1.665(d)-1A(c)) for such preceding taxable year, multiplied by a fraction, the numerator of which is the amount of the capital gain distribution allocated to such preceding taxable year and the denominator of which is the undistributed capital gain for such preceding taxable year. See paragraph (b) of example 1 and paragraphs (c) and (f) of example 2 in Sec. 1.669(e)-2A for illustrations of this paragraph.
(b) For the purpose of paragraph (a) of this section, the undistributed capital gain of any preceding taxable year and the taxes imposed on the trust for such preceding taxable year attributable to such undistributed capital gain are computed after taking into account any capital gain distributions of any taxable years intervening between such preceding taxable year and the taxable year. See paragraph (c) of Sec. 1.669(a)-1A, paragraph (c) of example 1 and paragraphs (e) and (h) of example 2 in Sec. 1.669(e)-2A. [T.D. 7204, 37 FR 17156, Aug. 25, 1972] Sec. 1.669(e)-2A Illustration of the provisions of section 669.
The application of the provisions of Sec. Sec. 1.669(a)-1A, 1.669(d)-1A, and 1.669(e)-1A may be illustrated by the following examples:
(a) A trust created on January 1, 1974, makes capital gain distributions as follows: 1979.............................................................$14,0001980..............................................................60,000 The trust had accumulated income in 1974. For 1974 through 1978, the undistributed portion of capital gain, taxes imposed on the trust attributable to the undistributed capital gain, and undistributed capital gain are as follows: ----------------------------------------------------------------------------------------------------------------
Taxes imposed on
Undistributed the trust
Year portion of attributable to Undistributed
capital gain the undistributed capital gain
capital gain----------------------------------------------------------------------------------------------------------------1974........................................................... $24,200 $2,830 $21,3701975........................................................... 32,200 4,330 27,8701976........................................................... 12,200 1,130 11,0701977........................................................... None None None1978........................................................... 10,200 910 9,290----------------------------------------------------------------------------------------------------------------
(b) Since the entire amount of the capital gain distribution for 1979 ($14,000), determined without regard to the capital gain distribution for 1980, is less than the undistributed capital gain for 1974 ($21,370), an additional amount of $1,854 (14,000/21,370x $2,830) is deemed distributed under section 669(e).
(c) In allocating the capital gain distribution for 1980, the amount of undistributed capital gain for 1974 will reflect the capital gain distribution for 1979. The undistributed capital gain for 1974 will then be $7,370 and the taxes imposed on the trust for 1974 will be $976, determined as follows: Undistributed capital gain as of the close of 1974.......... $21,370Less: Capital gain distribution (1979)...................... 14,000
-----------
Balance (undistributed capital gain as of the close of 7,370
1979)..................................................Taxes imposed on the trust attributable to the undistributed 976
capital gain as of the close of 1979 (7,370/ 21,370x2,830).
(d) The capital gain distribution of $60,000 for 1980 is deemed to have been made on the last day of the preceding taxable years of the trust to the extent of $55,600, the total of the undistributed capital gain for such years, as shown in the tabulation below. In addition, $7,346, the total taxes imposed on the trust attributable to the undistributed capital gain for such years is also deemed to have been distributed on the last day of such years, as shown below: ------------------------------------------------------------------------
Taxes imposed on
the trust
Year Undistributed attributable to
capital gain the undistributed
capital gain------------------------------------------------------------------------1974................................. $7,370 $9761975................................. 27,870 4,3301976................................. 11,070 1,1301977................................. None None1978................................. 9,290 9101979................................. None None
----------------------------------
Total............................ 55,600 7,346------------------------------------------------------------------------
(a) Under the terms of a trust instrument, the trustee has discretion to accumulate or distribute the income to X and to invade corpus for the benefit of X. The trust is subject to capital gain throwback. Both X and the trust report on the calendar year basis. All of the income for 1974 was distributed and the capital gain was accumulated. The capital gain of the trust for the taxable year 1974 is $40,200 and the income taxes paid by the trust for 1974 attributable to the undistributed capital gain are $6,070. All of the income and capital gains for 1975 and 1976 were distributed and in addition the trustee made capital gain distributions within the meaning of section 665(g) of $8,000 for each year.
(b) The undistributed capital gain of the trust determined under section 665(f) as of the close of 1974 is $34,130, computed as follows: Capital gain................................................ $40,200
Less: Taxes imposed on the trust attributable to the 6,070
undistributed capital gain.............................
-----------
Undistributed capital gain as of the close of 1974...... 34,130
(c) The capital gain distribution of $8,000 made during the taxable year 1975 is deemed under section 669(a) to have been made on December 31, 1974. Since this capital gain distribution is less than the 1974 undistributed capital gain of $34,130, a portion of the taxes imposed on the trust for 1974 is also deemed under section 669(e) to have been distributed on December 31, 1974. The total amount deemed to have been distributed to X on December 31, 1974, is $9,486, computed as follows: Capital gain distribution................................... $8,000Taxes deemed distributed (8,000/ 34,130x$6,070)............. 1,423
-----------
Total................................................... 9,423
(d) After the application of the provisions of subpart D to the capital gain distribution of 1975, the undistributed capital gain of the trust for 1974 is $26,130, computed as follows: Undistributed capital gain as of the close of 1974.......... $34,130
Less: 1975 capital gain distribution deemed distributed 8,000
on December 31, 1974 (paragraph (c) of this example)...
-----------
Undistributed capital gain for 1974 as of the close of 26,130
1975...................................................
(e) The taxes imposed on the trust attributable to the undistributed capital gain for the taxable year 1974, as adjusted to give effective to the 1975 capital gain distribution, amount to $4,647, computed as follows: Taxes imposed on the trust attributable to undistributed $6,070
capital gain as of the close of 1974.......................
Less: Taxes deemed distributed in 1974.................. 1,423
-----------
Taxes attributable to the undistributed capital gain 4,647
determined as of the close of 1975.....................
(f) The capital gain distribution of $8,000 made during the taxable year 1976 is, under section 669(a), deemed an amount properly distributed to X on December 31, 1974. Since the capital gain distribution is less than the 1974 adjusted undistributed capital gain of $26,130, the trust is deemed under section 669(e) also to have distributed on December 31, 1974, a portion of the taxes imposed on the trust for 1974. The total amount deemed to be distributed on December 31, 1974, with respect to the capital gain distribution made in 1976, is $9,423, computed as follows: Capital gain distribution................................... $8,000Taxes deemed distributed (8,000/ 26,130x$4,647)............. 1,423
-----------
Total................................................... 9,423
(g) After the application of the provisions of subpart D to the capital gain distribution of 1976, the undistributed capital gain of the trust for 1974 is $18,130, computed as follows: Undistributed capital gain for 1974 as of the close of 1975. $26,130Less:
1976 capital gain distribution deemed distributed on 8,000
December 31, 1974 (paragraph (f) of this example)........
-----------
Undistributed capital gain for 1974 as of the close of 18,130
1976.....................................................
(h) The taxes imposed on the trust attributable to the undistributed capital gain of the trust for the taxable year 1974, determined as of the close of the taxable year 1976, amount to $3,224 ($4,647 less $1,423). [T.D. 7204, 37 FR 17156, Aug. 25, 1972] Sec. 1.669(f)-1A Character of capital gain.
Amounts distributed as a capital gain distribution and the taxes attributable thereto (determined under Sec. 1.665(d)-1A(c)) retain the character that the gain had with respect to the trust. Thus, a capital gain that was taxed to the trust as a ``long-term'' capital gain and the pro rata amount of taxes attributable to such long-term gain shall be treated to the beneficiary as a ``long-term'' capital gain when they are deemed distributed as part of a capital gain distribution. If a trust has different types of capital gain for the same taxable year, and all of the capital gains are not deemed distributed for such year under section 669(a), the amount deemed distributed from such year (including taxes deemed distributed) shall be treated as consisting of the different types of gains in the ratio that the total of each such type of gains of the trust bears to the total of all such gains for the taxable year. For example, assume that in 1975 a trust had net long-term capital gains of $4,000 and net short-term capital gains of $2,000. Taxes attributable to such undistributed capital gain were $700. Therefore, undistributed capital gain for 1975 is $5,300. In 1980, the trust distributes $2,650 that is deemed to be undistributed capital gain from 1975. Such distribution is deemed to consist of long-term gain of $1,766.67 and short-term gain of $883.33. The taxes deemed distributed of $350 consist of long-term gain of $233.33 and short-term gain of $116.67. [T.D. 7204, 37 FR 17157, Aug. 25, 1972] Sec. 1.669(f)-2A Exception for capital gain distributions from certaintrusts.
(a) General rule. If a capital gain distribution is paid, credited, or required to be distributed before January 1, 1973, from a trust that was in existence on December 31, 1969, section 669 shall not apply and no tax shall be imposed on such capital gain distribution under section 668(a)(3). If capital gain distributions from more than one such trust are paid, credited, or required to be distributed to a beneficiary before January 1, 1973, the exception under the preceding sentence shall apply only to the capital gain distributions from one of the trusts. The beneficiary shall indicate on his income tax return for the taxable year in which the distribution would otherwise be included in income under section 668(a) the trust to which the exception provided by this section shall apply.
(b) Special rule for section 2056(b)(5) trust. A capital gain distribution paid, credited, or required to be distributed by a trust that qualifies under section 2056(b)(5) of the Code (commonly known as a ``marital deduction trust'') to a surviving spouse shall, in general, not be taxed under section 668(a)(3) since such a trust is required to distribute all of its income annually or more often. See section 2056(b)(5) and the regulations thereunder.
(c) Effect of exception. If this section applies to a capital gain distribution from a trust, such distribution shall reduce the undistributed capital gain of the trust. Since section 669 does not apply to such capital gain distribution, no amount of taxes paid by the trust attributable to such capital gain distribution are deemed distributed under section 669 (d) and (e). [T.D. 7204, 37 FR 17157, Aug. 25, 1972] Sec. 1.669(a)-1 Limitation on tax.
(a) In general. Section 669 provides that, at the election of a beneficiary who is a U.S. person (as defined in section 7701(a)(30)) and who satisfies the requirements of section 669(b) (that certain information with respect to the operation and accounts of the trust be supplied), the tax attributable to the amounts treated under section 668(a) as having been received by him, from a foreign trust created by a U.S. person, on the last day of a preceding taxable year of the trust shall not be greater than the tax computed under section 669(a)(1)(A) (the computation under this provision will hereinafter be referred to as the ``exact throwback'' method) or under section 669(a)(1)(B) (the computation under this provision will hereinafter be referred to as the ``short-cut throwback'' method). This election of the beneficiary with respect to the taxable year of the beneficiary in which the distribution is made shall be made with the district director before the expiration of the period of limitations for assessment provided in section 6501 for such taxable year.
(b) Where no election is made. If the beneficiary does not make the election provided in section 669(a) in the manner required in section 669(b) and Sec. 1.669(b)-2, or furnish the information with respect to the operation and accounts of the foreign trust created by a U.S. person required by section 669(b) and Sec. 1.669(b)-1, the tax on an accumulation distribution treated under section 668(a) as having been received by him from such foreign trust on the last day of a preceding taxable year of the trust shall be computed without reference to section 668 or 669. In such case, the entire accumulation distribution will be included in the gross income of the beneficiary in the year in which it is paid, credited, or required to be distributed, and tax for such year will be computed on the basis of the beneficiary's total taxable income for the year after taking into account such inclusion in gross income.
(c) Year for which tax is payable. The tax, regardless of the manner in which computed, of the beneficiary which is attributable to an accumulation distribution is imposed on the beneficiary for the taxable year of the beneficiary in which the accumulation distribution is made to him unless the taxable year of the beneficiary is different from that of the trust. See section 662(c) and Sec. 1.662(c)-1. [T.D. 6989, 34 FR 738, Jan. 17, 1969] Sec. 1.669(a)-2 Rules applicable to section 669 computations.
(a) In general. (1) Section 668(a) provides that the total of the amounts treated under section 666 as having been distributed by the foreign trust created by a U.S. person on the last day of a preceding taxable year of such trust shall be included in the gross income of the beneficiary or the beneficiaries who are U.S. persons receiving them. The total of such amounts is includible in the gross income of each beneficiary to the extent the amount would have been included in his gross income under section 662 (a)(2) and (b) if the total had actually been paid by the trust on the last day of such preceding taxable year. The total is included in the gross income of the beneficiary for the taxable year of the beneficiary in which such amounts are in fact paid, credited, or required to be distributed unless the taxable year of the beneficiary differs from the taxable year of the trust (see section 662(c) and Sec. 1.662(c)-1). The character of the amounts treated as received by a beneficiary in prior taxable years, including taxes deemed distributed, in the hands of the beneficiary is determined by the rules contained in section 662(b) and Sec. Sec. 1.662(b)-1 and 1.662(b)-2.
(1) Section 668(a) provides that the total of the amounts treated under section 666 as having been distributed by the foreign trust created by a U.S. person on the last day of a preceding taxable year of such trust shall be included in the gross income of the beneficiary or the beneficiaries who are U.S. persons receiving them. The total of such amounts is includible in the gross income of each beneficiary to the extent the amount would have been included in his gross income under section 662 (a)(2) and (b) if the total had actually been paid by the trust on the last day of such preceding taxable year. The total is included in the gross income of the beneficiary for the taxable year of the beneficiary in which such amounts are in fact paid, credited, or required to be distributed unless the taxable year of the beneficiary differs from the taxable year of the trust (see section 662(c) and Sec. 1.662(c)-1). The character of the amounts treated as received by a beneficiary in prior taxable years, including taxes deemed distributed, in the hands of the beneficiary is determined by the rules contained in section 662(b) and Sec. Sec. 1.662(b)-1 and 1.662(b)-2.
(2) The total of the amounts treated under section 666 as having been distributed by the trust on the last day of a preceding taxable year of the trust are included as prescribed in subparagraph (1) of this paragraph in the gross income of the beneficiary even though as of that day the beneficiary would not have been entitled to receive them had they actually been distributed on that day.
(3) Any deduction allowed to the trust in computing distributable net income for a preceding taxable year (such as depreciation, depletion, etc.) is not deemed allocable to a beneficiary because of the amounts included in a beneficiary's gross income under this section since the deduction has already been utilized in reducing the amount included in the beneficiary's income.
(b) Allocation among beneficiaries of a foreign trust. Where there is more than one beneficiary the portion of the total amount includible in gross income under paragraph (a) of this section which is includible in the gross income of a beneficiary who is a U.S. person is based upon the ratio determined under the second sentence of section 662(a)(2) for the taxable year in which distributed (and not for the preceding taxable year). This paragraph may be illustrated by the example in Sec. 1.668(a)-2.
(c) Treatment of income taxes paid by the trust--(1) Current distributions. The income taxes imposed by the provisions of section 871 on the income of a foreign trust created by a U.S. person shall be included in the gross income of the beneficiary, who is a U.S. person, for the taxable year in which such income is paid, credited, or required to be distributed to the beneficiary.
(1) Current distributions. The income taxes imposed by the provisions of section 871 on the income of a foreign trust created by a U.S. person shall be included in the gross income of the beneficiary, who is a U.S. person, for the taxable year in which such income is paid, credited, or required to be distributed to the beneficiary.
(2) Accumulation distribution. (i) If an accumulation distribution is deemed under Sec. 1.666(a)-1 to be distributed on the last day of a preceding taxable year and the amount is not less than the undistributed net income for such preceding taxable year, then an additional amount equal to the taxes imposed on the trust pursuant to the provisions of section 871 for such preceding taxable year is likewise deemed distributed under section 661(a)(2).
(i) If an accumulation distribution is deemed under Sec. 1.666(a)-1 to be distributed on the last day of a preceding taxable year and the amount is not less than the undistributed net income for such preceding taxable year, then an additional amount equal to the taxes imposed on the trust pursuant to the provisions of section 871 for such preceding taxable year is likewise deemed distributed under section 661(a)(2).
(ii) If an accumulation distribution is deemed under Sec. 1.666(a)-1 to be distributed on the last day of a preceding taxable year and the amount is less than the undistributed net income for such preceding taxable year, then an additional amount (representing taxes) is likewise deemed distributed under section 661(a)(2). The additional amount is equal to the taxes imposed on the trust pursuant to the provisions of section 871 for such preceding taxable year, multiplied by the fraction the numerator of which is the amount of the accumulation distribution attributable to such preceding taxable year and the denominator of which is the undistributed net income for such preceding taxable year.
(3) Credits under sections 32 and 668(b). Credit under section 32 is allowable to the beneficiary for income taxes withheld at source under subchapters A and B of chapter 3 and which are deemed distributed to him. Credit under section 668(b) is allowable to the beneficiary for income taxes imposed upon the foreign trust by section 871(b). These credits shall be allowed against the tax of the beneficiary for the taxable year of the beneficiary in which the income is paid, credited, or required to be distributed to him, or in which the accumulation distribution to which such taxes relate is made to him.
(d) Credit for foreign income taxes paid by the trust. To the extent provided in section 901, credit under section 33 is allowable to the beneficiary for the foreign taxes paid or accrued by the trust to a foreign country. [T.D. 6989, 34 FR 738, Jan. 17, 1969] Sec. 1.669(a)-3 Tax computed by the exact throwback method.
(a) Tax attributable to amounts treated as received in preceding taxable years. If a taxpayer elects to compute the tax, on amounts deemed distributed under section 666, by the exact throwback method provided in section 669(a)(1)(A), the tax liability of the beneficiary for the taxable year in which the accumulation distribution is paid, credited, or required to be distributed is computed as provided in paragraph (b) of this section. The beneficiary may not elect to use the exact throwback method of computing his tax on an accumulation distribution as provided in section 669(a)(1)(A) if he were not alive on the last day of each preceding taxable year of the foreign trust created by a U.S. person with respect to which a distribution is deemed made under section 666(a). Thus, if a portion of an amount received as an accumulation distribution was accumulated by the trust during years before the beneficiary was born, the beneficiary is not permitted to elect the exact throwback method provided in section 669(a)(1)(A). See Sec. 1.669(a)-4 for the computation of the tax on an accumulation distribution by the short-cut throwback method provided in section 669(a)(1)(B) under these circumstances.
(b) Computation of tax. The tax referred to in paragraph (a) of this section is computed as follows:
(1) First, compute the tax attributable to the section 666 amounts for each of the preceding taxable years. To determine the section 666 amounts attributable to each of the preceding taxable years, see Sec. 1.666(a)-1. The tax attributable to such amounts in each such preceding taxable year is the difference between the tax for such preceding taxable year computed with the inclusion of the section 666 amounts in gross income, and the tax for such year computed without including them in gross income. Tax computations for each preceding year shall reflect the taxpayer's marital and dependency status for that year.
(2) Second, add
(i) The sum of the taxes for the preceding taxable years attributable to the section 666 amounts (computed in accordance with subparagraph (1) of this paragraph), and
(ii) The tax for the taxable year of the beneficiary in which the accumulation distribution is paid, credited, or required to be distributed to him, computed without including the section 666 amounts in gross income. The total of these amounts is the beneficiary's tax, computed under section 669(a)(1)(A) for the taxable year in which the accumulation distribution is paid, credited, or required to be distributed to him.
(c) Effect of prior election. In computing the tax attributable to an accumulation distribution for the taxable year in which such accumulation distribution is paid, credited, or required to be distributed to him, the beneficiary in computing the tax attributable to section 666 amounts for each of the preceding taxable years, must include in his gross income for each such year the section 666 amounts deemed distributed to him in such year resulting from prior accumulation distributions made to him in taxable years prior to the current taxable year. These section 666 amounts resulting from such prior accumulation distributions must be included in the gross income for such preceding taxable year even though the tax on the accumulation distribution of such prior taxable year was computed by the short-cut throwback method provided in section 669(a)(1)(B) and Sec. 1.669(a)-4. [T.D. 6989, 34 FR 739, Jan. 17, 1969] Sec. 1.669(a)-4 Tax attributable to short-cut throwback method.
(a) Manner of computing tax. If a beneficiary has elected under section 669(a) to compute the tax on the amounts deemed distributed under section 666 by the short-cut throwback method provided in section 669(a)(1)(B), the tax liability of the beneficiary for the taxable year is computed in the following manner:
(1) First, determine the number of preceding taxable years of the trust, on the last day of which an amount is deemed under section 666(a) to have been distributed. In any case where there has been a prior accumulation distribution with respect to which the beneficiary has elected to compute his tax either by the exact throwback method or by the short-cut throwback method, or to which the next to the last sentence of section 668(a) has applied, for purposes of an election to use the short-cut throwback method with respect to a subsequent accumulation distribution, in determining the number of preceding taxable years of the trust with respect to which an amount of the subsequent accumulation distribution is deemed distributed to a beneficiary under section 666(a), there shall be excluded any preceding taxable year during which any part of the prior accumulation distribution was deemed distributed to the beneficiary. For example, assume that an accumulation distribution of $90,000 made to a beneficiary in 1963 is deemed distributed in the amounts of $25,000 in each of the years 1962, 1961, and 1960, and in the amount of $15,000 in 1959, and a subsequent accumulation distribution of $85,000 made to the same beneficiary in 1964 is deemed distributed in the amount of $10,000 during 1959, and $25,000 during each of the years 1958, 1957, and 1956. The accumulation distribution made in 1963 is deemed distributed in 4 preceding taxable years of the trust (1962, 1961, 1960, and 1959). Inasmuch as the year 1959 was a year during which part of the 1963 accumulation distribution was deemed distributed, for purposes of determining the number of preceding taxable years in which the accumulation distribution of $85,000 made in 1964 is deemed distributed, the year 1959 is excluded and the $85,000 accumulation distribution is deemed distributed in three preceding taxable years (1958, 1957, and 1956),
(2) Second, divide the number of preceding taxable years of the trust, on the last day of which an amount is deemed under section 666(a) to have been distributed (determined as provided in subparagraph (1) of this paragraph) into the amount (representing an accumulation distribution made by a foreign trust created by a U.S. person) required to be included under section 669(a) in the gross income of the beneficiary for the taxable year,
(3) Third, compute the tax of the beneficiary for the current taxable year (the year in which the accumulation distribution is paid, credited, or required to be distributed to him) and for each of the 2 taxable years immediately preceding such year,
(i) With the inclusion in gross income of the beneficiary for each of such 3 years of the amount determined under subparagraph (2) of this paragraph, and
(ii) Without such inclusion. The difference between the amount of tax computed under subdivision (i) of this subparagraph for each year and the amount computed under subdivision (ii) of this subparagraph for that year is the additional tax resulting from the inclusion in gross income for that year of the amount determined under subparagraph (2) of this paragraph. If the number of preceding taxable years of the trust, on the last day of which an amount is deemed under section 666(a) to have been distributed, is less than three, the taxable years of the beneficiary for which this recomputation is made shall equal the number of years in which an amount is deemed under section 666(a) to have been distributed, commencing with the taxable year of the beneficiary in which the accumulation distribution is paid, credited, or required to be distributed to him. If the beneficiary was not alive during one of the two taxable years immediately preceding the taxable year, the tax resulting from the inclusion of the amount determined in subparagraph (2) of this paragraph in the gross income of the beneficiary will be computed only for the taxable year in which the accumulation distribution was paid, credited, or required to be distributed to him and the preceding year during which the beneficiary was alive. In the event the beneficiary was not alive during either of the 2 years immediately preceding the taxable year in which the accumulation distribution was paid, credited, or required to be distributed, the tax shall be computed on the basis of the beneficiary's taxable year without regard to the inclusion in income required by section 668(a) of any amount other than pursuant to section 669(a)(1)(B). For example, assume that a foreign trust created by a U.S. person accumulates $3,000 of income in 1964 and $7,000 in 1963 and then distributes the accumulated income on January 1, 1965, to a beneficiary who is a U.S. person. The limitation on tax is determined by recomputing the beneficiary's gross income for 1964 and 1965 by adding $5,000 to his gross income for each year. If the same distribution were made to an infant who was born in 1965, the limitation on tax would be computed by adding $5,000 to his gross income for such year. In the case of the infant, the resulting increase in tax would be multiplied by two to arrive at the limitation on the increase in his tax for 1965 attributable to such distribution.
(4) Fourth, add the additional taxes resulting from the application of subparagraph (3) of this paragraph for the taxable year and the 2 taxable years (or the 1 taxable year, where applicable) immediately preceding the year in which the accumulation distribution is paid, credited, or required to be distributed and then divide this amount by three (or two, where applicable). The resulting amount is then multiplied by the number of preceding taxable years of the trust on the last day of which an amount is deemed under section 666(a) to have been distributed (previously determined under subparagraph (1) of this paragraph). The resulting amount is the tax, under the short-cut throwback method provided in section 669(a)(1)(B), which is attributable to the amounts treated under section 668(a) as having been received by the beneficiary from a foreign trust created by a U.S. person on the last day of the preceding taxable year.
(5) Fifth, add the amount determined under subparagraph (4) of this paragraph to the beneficiary's tax for the taxable year in which the accumulation distribution was paid, credited, or required to be distributed to him, computed without inclusion of the accumulation distribution in gross income for that year. The total is the beneficiary's income tax for such year.
(b) Credit for tax paid by trust. The income taxes deemed distributed to a beneficiary in the manner described in paragraphs (c) and (d) of Sec. 1.669(a)-2 are included in the beneficiary's gross income for purposes of the computations required by this section. To the extent provided in Sec. 1.669(a)-2, credits for such taxes are allowable to the beneficiary. In the computations under the short-cut throwback method provided in section 669(a)(1)(B), the rules set forth in section 662(b) and Sec. 1.662(b)-1 shall be applied in determining the character, in the hands of the beneficiary, of the amounts, including taxes includible in the distribution or deemed distributed, treated as received by a beneficiary in prior taxable years. For example, if one-fifth of such amounts represents tax-free income, then one-fifth of the amount determined under paragraph (a)(2) of this section shall be treated as tax-free income. [T.D. 6989, 34 FR 739, Jan. 17, 1969] Sec. 1.669(b)-1 Information requirements.
The election of a beneficiary who is a U.S. person to apply the limitations on tax provided in section 669(a) shall not be effective unless the beneficiary, at or before the time the election is made, supplies, in a letter addressed to the district director for the internal revenue district in which the taxpayer files his return (or the Director of International Operations where appropriate), or in a statement attached to his return, the following information with respect to the operation and accounts of the foreign trust created by a U.S. person for each of the preceding taxable years, on the last day of which an amount is deemed distributed under section 666(a):
(a) The gross income of the trust: The gross income should be separated to show the amount of each type of income received by the trust and to identify its source. For example, the beneficiary should list separately, by type (dividends, rents, capital gains, taxable interest, exempt interest, etc.) and source (name and country of payor), each item of income included in the gross income of the trust. For this purpose, the gross income of the trust includes gross income from U.S. sources which is exempt from taxation under section 894.
(b) The amount of tax withheld under section 1441 by the United States on income from sources within the United States.
(c) The amount of the tax paid to each foreign country by the trust.
(d) The expenses of the trust attributable to each type of income disclosed in paragraph (b) of this section, and the general expenses of the trust.
(e) The distributions, if any, made by the trust to the beneficiaries (including those who are not U.S. persons). These distributions should be separated into amounts of income required to be distributed currently within the meaning of section 661(a)(1), and any other amounts properly paid, credited, or required to be distributed within the meaning of section 661(a)(2).
(f) Any other information which is necessary for the computation of tax on the accumulation distribution as provided in section 669(a).
(g) If the foreign trust created by a U.S. person is less than the entire foreign trust, the information listed in paragraphs (a) through (f) of this section shall also be furnished with respect to that portion of the entire foreign trust which is not a foreign trust created by a U.S. person. [T.D. 6989, 34 FR 740, Jan. 17, 1969] Sec. 1.669(b)-2 Manner of exercising election.
(a) By whom election is to be made. Except as otherwise provided in this paragraph, a taxpayer whose tax liability is affected by the election shall make the election provided in section 669(a). In the case of a partnership, or a corporation electing under the provisions of subchapter S, chapter 1 of the Code, the election shall be exercised by the partnership or such corporation.
(b) Time and manner of making election. The election under section 669(a) may be made, or revoked, at any time before the expiration of the period provided in section 6501 for assessment of the tax. If an election is revoked, a new election may be made at any time before the expiration of such period. The election (or a revocation of an election) may be made in a letter addressed to the district director of internal revenue for the district in which the taxpayer files his tax return (or the Director of International Operations where appropriate) or may be made in a statement attached to the return. In any case where all the information described in Sec. 1.669(b)-1 is not furnished at or before the time the beneficiary signifies his intention of making an election and by reason thereof an election has not been made, and subsequent thereto, but before the expiration of the period provided in section 6501 for the assessment of the tax, there is furnished the required information not previously furnished, the election will be considered as made at the time such additional information is furnished. [T.D. 6989, 34 FR 740, Jan. 17, 1969]
unitrust actuarial tables applicable before may 1, 2009 Sec. 1.664-4A Valuation of charitable remainder interests for whichthe valuation date is before May 1, 2009.
(a) Valuation of charitable remainder interests for which the valuation date is before January 1, 1952. There was no provision for the qualification of a charitable remainder unitrust under section 664 until 1969. See Sec. 20.2031-7A(a) of this chapter (Estate Tax Regulations) for the determination of the present value of a charitable interest for which the valuation date is before January 1, 1952.
(b) Valuation of charitable remainder interests for which the valuation date is after December 31, 1951, and before January 1, 1971. No charitable deduction is allowable for a transfer to a unitrust for which the valuation date is after the effective dates of the Tax Reform Act of 1969 unless the unitrust meets the requirements of section 664. See Sec. 20.2031-7A(b) of this chapter (Estate Tax Regulations) for the determination of the present value of a charitable remainder interest for which the valuation date is after December 31, 1951, and before January 1, 1971.
(c) Valuation of charitable remainder unitrusts having certain payout sequences for transfers for which the valuation date is after December 31, 1970, and before December 1, 1983. For the determination of the present value of a charitable remainder unitrust for which the valuation date is after December 31, 1970, and before December 1, 1983, see Sec. 20.2031-7A(c) of this chapter (Estate Tax Regulations) and former Sec. 1.664-4(d) (as contained in the 26 CFR part 1 edition revised as of April 1, 1994).
(d) Valuation of charitable remainder unitrusts having certain payout sequences for transfers for which the valuation date is after November 30, 1983, and before May 1, 1989--(1) In general. Except as otherwise provided in paragraph (d)(2) of this section, in the case of transfers made after November 30, 1983, for which the valuation date is before May 1, 1989, the present value of a remainder interest that is dependent on a term of years or the termination of the life of one individual is determined under paragraphs (d)(3) through (d)(6) of this section, provided that the amount of the payout as of any payout date during any taxable year of the trust is not larger than the amount that the trust could distribute on such date under Sec. 1.664-3(a)(1)(v) if the taxable year of the trust were to end on such date. The present value of the remainder interest in the trust is determined by computing the adjusted payout rate (as defined in paragraph (d)(3) of this section) and following the procedure outlined in paragraph (d)(4) or (d)(5) of this section, whichever is applicable. The present value of a remainder interest that is dependent on a term of years is computed under paragraph (d)(4) of this section. The present value of a remainder interest that is dependent on the termination of the life of one individual is computed under paragraph (d)(5) of this section. See paragraph (d)(2) of this section for testamentary transfers for which the valuation date is after November 30, 1983, and before August 9, 1984.
(1) In general. Except as otherwise provided in paragraph (d)(2) of this section, in the case of transfers made after November 30, 1983, for which the valuation date is before May 1, 1989, the present value of a remainder interest that is dependent on a term of years or the termination of the life of one individual is determined under paragraphs (d)(3) through (d)(6) of this section, provided that the amount of the payout as of any payout date during any taxable year of the trust is not larger than the amount that the trust could distribute on such date under Sec. 1.664-3(a)(1)(v) if the taxable year of the trust were to end on such date. The present value of the remainder interest in the trust is determined by computing the adjusted payout rate (as defined in paragraph (d)(3) of this section) and following the procedure outlined in paragraph (d)(4) or (d)(5) of this section, whichever is applicable. The present value of a remainder interest that is dependent on a term of years is computed under paragraph (d)(4) of this section. The present value of a remainder interest that is dependent on the termination of the life of one individual is computed under paragraph (d)(5) of this section. See paragraph (d)(2) of this section for testamentary transfers for which the valuation date is after November 30, 1983, and before August 9, 1984.
(2) Rules for determining the present value for testamentary transfers where the decedent dies after November 30, 1983, and before August 9, 1984. For purposes of section 2055 or 2106, if--
(i) The decedent dies after November 30, 1983, and before August 9, 1984; or
(ii) On December 1, 1983, the decedent was mentally incompetent so that the disposition of the property could not be changed, and the decedent died after November 30, 1983, without regaining competency to dispose of the decedent's property, or died within 90 days of the date on which the decedent first regained competency, the present value determined under this section of a remainder interest is determined in accordance with paragraph (d)(1) and paragraphs (d)(3) through (d)(6) of this section, or Sec. 1.664-4A(c), at the option of the taxpayer.
(3) Adjusted payout rate. The adjusted payout rate is determined by multiplying the fixed percentage described in paragraph (a)(1)(i)(a) of Sec. 1.664-3 by the figure in column (2) of Table F(1) which describes the payout sequence of the trust opposite the number in column (1) of Table F(1) which corresponds to the number of months by which the valuation date for the first full taxable year of the trust precedes the first payout date for such taxable year. If the governing instrument does not prescribe when the distribution shall be made during the taxable year of the trust, see Sec. 1.664-4(a). In the case of a trust having a payout sequence for which no figures have been provided by Table F (1) and in the case of a trust which determines the fair market value of the trust assets by taking the average of valuations on more than one date during the taxable year, see Sec. 1.664-4(b).
(4) Period is a term of years. If the period described in Sec. 1.664-3(a)(5) is a term of years, the factor which is used in determining the present value of the remainder interest is the factor under the appropriate adjusted payout rate in Table D in Sec. 1.664-4(e)(6) that corresponds to the number of years in the term. If the adjusted payout rate is an amount which is between adjusted payout rates for which factors are provided in Table D, a linear interpolation must be made. The present value of the remainder interest is determined by multiplying the net fair market value (as of the appropriate valuation date) of the property placed in trust by the factor determined under this paragraph (d)(4). For purposes of this section, the term appropriate valuation date means the date on which the property is transferred to the trust by the donor except that, for purposes of section 2055 or 2106, it means the date of death unless the alternate valuation date is elected in accordance with section 2032 and the regulations thereunder in which event it means the alternate valuation date. If the adjusted payout rate is greater than 14 percent, see Sec. 1.664-4(b). The application of this paragraph (d)(4) may be illustrated by the following example:
Example. D transfers $100,000 to a charitable remainder unitrust on January 1, 1985. The trust instrument requires that the trust pay to D semiannually (on June 30 and December 31) 10 percent of the fair market value of the trust assets as of June 30th for a term of 15 years. The adjusted payout rate is 9.767 percent (10%x0.976731). The present value of the remainder interest is $21,404.90, computed as follows: Factor at 9.6 percent for 15 years............................ 0.220053Factor at 9.8 percent for 15 years............................ .212862
---------
Difference................................................ .007191
[GRAPHIC] [TIFF OMITTED] TC14NO91.134 9.767% - 9.6 / 0.2% == / .007191 X === .006004 Factor at 9.6 percent for 15 years........................... 0.220053Less: X...................................................... .006004
Interpolated factor...................................... .214049
Present value of remainder
interest===$100,000x0.214049===$21,404.90
(5) Period is the life of one individual. If the period described in paragraph (a)(5) of Sec. 1.664-3 is the life of one individual, the factor that is used in determining the present value of the remainder interest is the factor under the appropriate adjusted payout rate in column (2) of Table E in paragraph (d)(6) of this section opposite the number in column (1) that corresponds to the age of the individual whose life measures the period. For purposes of the computations described in this paragraph (b)(5), the age of an individual is to be taken as the age of that individual at the individual's nearest birthday. If the adjusted payout rate is an amount which is between adjusted payout rates for which factors are provided for in Table E, a linear interpolation must be made. The present value of the remainder interest is determined by multiplying the net fair market value (as of the appropriate valuation date) of the property placed in trust by the factor determined under this paragraph (b)(5). If the adjusted payout rate is greater than 14 percent, see Sec. 1.664-4(b). The application of this paragraph may be illustrated by the following example:
Example. A, who will be 50 years old on April 15, 1985, transfers $100,000 to a charitable remainder unitrust on January 1, 1985. The trust instrument requires that the trust pay to A at the end of each taxable year of the trust 10 percent of the fair market value of the trust assets as of the beginning of each taxable year of the trust. The adjusted payout rate is 9.091 percent (10 percentx.909091). The present value of the remainder interest is $15,259.00 computed as follows: Factor at 9 percent at age 50................................. 0.15472Factor at 9.2 percent at age 50............................... .15003
---------
Difference................................................ .00469
9.091%-9%/0.2%=X/0.00469
x=0.00213
Factor at 9 percent at age 50................................. .15472Less: X....................................................... .00213
---------
Interpolated factor....................................... .15259
Present value of remainder interest=
$100,000x0.15259=$15,259.00
(6) Actuarial tables for transfers for which the valuation date is after November 30, 1983, and before May 1, 1989. Table D in Sec. 1.664-4(e)(6) and the following tables shall be used in the application of the provisions of this section:
Table E
Table E--Single Life, Unisex--Table Showing the Present Worth of the Remainder Interest in Property Transferred
to a Unitrust Having the Adjusted Payout Rate Shown--Applicable for Transfers After November 30, 1983, and
Before May 1, 1989----------------------------------------------------------------------------------------------------------------
(2) Adjusted payout rate
(1) Age -------------------------------------------------
2.2% 2.4% 2.6% 2.8% 3.0%----------------------------------------------------------------------------------------------------------------0............................................................. .23253 .20635 .18364 .16394 .146831............................................................. .22196 .19506 .17170 .15139 .133722............................................................. .22597 .19884 .17523 .15468 .136763............................................................. .23039 .20304 .17920 .15840 .140244............................................................. .23503 .20747 .18340 .16237 .143975............................................................. .23988 .21211 .18783 .16656 .147936............................................................. .24489 .21693 .19243 .17094 .152077............................................................. .25004 .22189 .19718 .17546 .156378............................................................. .25534 .22701 .20209 .18016 .160849............................................................. .26080 .23230 .20718 .18503 .1654910............................................................ .26640 .23774 .21243 .19008 .1703111............................................................ .27217 .24335 .21786 .19530 .1753212............................................................ .27807 .24911 .22344 .20068 .1804913............................................................ .28407 .25497 .22913 .20618 .1857914............................................................ .29013 .26089 .23489 .21175 .1911515............................................................ .29621 .26684 .24067 .21735 .1965516............................................................ .30229 .27279 .24647 .22296 .2019617............................................................ .30838 .27876 .25228 .22859 .2073918............................................................ .31451 .28477 .25813 .23427 .2128719............................................................ .32070 .29085 .26407 .24003 .2184420............................................................ .32699 .29704 .27012 .24591 .2241321............................................................ .33339 .30335 .27629 .25192 .2299622............................................................ .33991 .30977 .28259 .25807 .2359223............................................................ .34655 .31634 .28904 .26437 .2420524............................................................ .35334 .32306 .29566 .27085 .2483625............................................................ .36031 .32998 .30248 .27754 .2549026............................................................ .36746 .33710 .30952 .28446 .2616727............................................................ .37481 .34443 .31678 .29161 .2686928............................................................ .38236 .35197 .32427 .29901 .2759629............................................................ .39006 .35968 .33194 .30660 .2834430............................................................ .39793 .36757 .33980 .31439 .2911331............................................................ .40594 .37561 .34783 .32237 .2990232............................................................ .41410 .38383 .35605 .33054 .3071133............................................................ .42240 .39220 .36444 .33890 .3154134............................................................ .43084 .40072 .37299 .34744 .3238935............................................................ .43942 .40941 .38172 .35617 .3325836............................................................ .44813 .41824 .39061 .36508 .3414637............................................................ .45696 .42720 .39966 .37416 .3505338............................................................ .46591 .43630 .40885 .38339 .3597739............................................................ .47496 .44552 .41818 .39278 .3691740............................................................ .48412 .45486 .42765 .40232 .3787541............................................................ .49338 .46432 .43725 .41201 .3884942............................................................ .50275 .47391 .44700 .42187 .3984043............................................................ .51221 .48360 .45686 .43186 .4084744............................................................ .52175 .49340 .46685 .44199 .4187045............................................................ .53136 .50327 .47693 .45223 .4290546............................................................ .54104 .51323 .48712 .46259 .4395347............................................................ .55077 .52327 .49739 .47305 .4501348............................................................ .56058 .53339 .50777 .48363 .4608749............................................................ .57043 .54358 .51823 .49432 .4717350............................................................ .58035 .55384 .52879 .50510 .4827151............................................................ .59029 .56415 .53940 .51597 .4937952............................................................ .60027 .57450 .55008 .52692 .50496
53............................................................ .61026 .58488 .56080 .53793 .5162054............................................................ .62025 .59528 .57154 .54897 .5275055............................................................ .63022 .60567 .58230 .56004 .5388456............................................................ .64018 .61606 .59306 .57113 .5502157............................................................ .65012 .62644 .60384 .58225 .5616358............................................................ .66004 .63681 .61461 .59337 .5730659............................................................ .66993 .64717 .62538 .60452 .5845360............................................................ .67979 .65751 .63615 .61567 .5960261............................................................ .68963 .66784 .64692 .62683 .6075462............................................................ .69944 .67815 .65769 .63801 .6190863............................................................ .70922 .68844 .66843 .64918 .6306364............................................................ .71893 .69868 .67915 .66032 .6421765............................................................ .72859 .70886 .68982 .67144 .6536966............................................................ .73817 .71897 .70043 .68250 .6651767............................................................ .74766 .72901 .71096 .69350 .6766068............................................................ .75706 .73896 .72142 .70443 .6879669............................................................ .76637 .74882 .73181 .71530 .6992870............................................................ .77559 .75861 .74212 .72610 .7105371............................................................ .78475 .76833 .75237 1.73685 1.7217672............................................................ .79383 .77799 .76257 .74756 .7329473............................................................ .80279 .78753 .77266 .75816 .7440374............................................................ .81158 .79689 .78256 .76858 .7549475............................................................ .82013 .80602 .79223 .77876 .7656176............................................................ .82844 .81488 .80163 .78867 .7759977............................................................ .83648 .82347 .81075 .79829 .7860978............................................................ .84428 .83182 .81961 .80764 .7959279............................................................ .85187 .83994 .82824 .81677 .8055280............................................................ .85927 .84787 .83668 .82569 .8149181............................................................ .86645 .85556 .84487 .83437 .8240482............................................................ .87336 .86299 .85278 .84275 .8328883............................................................ .88003 .87014 .86042 .85084 .8414284............................................................ .88648 .87708 .86782 .85870 .8497185............................................................ .89273 .88381 .87501 .86633 .8577886............................................................ .89868 .89021 .88185 .87360 .8654787............................................................ .90417 .89613 .88818 .88034 .8726088............................................................ .90923 .90158 .89402 .88655 .8791789............................................................ .91396 .90668 .89948 .89237 .8853390............................................................ .91849 .91156 .90471 .89794 .8912491............................................................ .92278 .91620 .90968 .90324 .8968692............................................................ .92673 .92046 .91426 .90812 .9020493............................................................ .93027 .92429 .91837 .91251 .9067094............................................................ .93341 .92768 .92201 .91639 .9108295............................................................ .93612 .93062 .92516 .91976 .9144096............................................................ .93841 .93309 .92782 .92259 .9174097............................................................ .94044 .93529 .93018 .92512 .9200998............................................................ .94223 .93723 .93226 .92733 .9224499............................................................ .94392 .93905 .93421 .92942 .92466100........................................................... .94559 .94086 .93615 .93149 .92685101........................................................... .94709 .94248 .93790 .93334 .92882102........................................................... .94873 .94424 .93979 .93536 .93096103........................................................... .95077 .94645 .94216 .93789 .93365104........................................................... .95278 .94862 .94449 .94037 .93628105........................................................... .95570 .95178 .94787 .94399 .94012106........................................................... .96017 .95662 .95309 .94957 .94607107........................................................... .96616 .96313 .96010 .95709 .95408108........................................................... .97515 .97291 .97067 .96843 .96620109........................................................... .98900 .98800 .98700 .98600 .98500----------------------------------------------------------------------------------------------------------------
Table E
Table E--Single Life, Unisex--Table Showing the Present Worth of the Remainder Interest in Property Transferred
to a Unitrust Having the Adjusted Payout Rate Shown--Applicable for Transfers After November 30, 1983, and
Before May 1, 1989----------------------------------------------------------------------------------------------------------------
(2) Adjusted payout rate
(1) Years -------------------------------------------------
3.2% 3.4% 3.6% 3.8% 4.0%----------------------------------------------------------------------------------------------------------------0............................................................. .13196 .11901 .10774 .09791 .089331............................................................. .11834 .10493 .09324 .08303 .074102............................................................. .12113 .10749 .09557 .08514 .076013............................................................. .12437 .11050 .09835 .08770 .078374............................................................. .12787 .11376 .10138 .09052 .080985............................................................. .13159 .11725 .10465 .09357 .083826............................................................. .13549 .12092 .10810 .09680 .086847............................................................. .13956 .12476 .11171 .10019 .090028............................................................. .14380 .12877 .11549 .10376 .093379............................................................. .14822 .13296 .11946 .10751 .0969110............................................................ .15282 .13734 .12361 .11144 .1006311............................................................ .15761 .14190 .12795 .11556 .1045412............................................................ .16257 .14663 .13247 .11986 .1086313............................................................ .16764 .15149 .13711 .12428 .1228314............................................................ .17279 .15643 .14182 .12878 .1171215............................................................ .17798 .16140 .14657 .13331 .1214316............................................................ .18318 .16638 .15133 .13785 .1257617............................................................ .18840 .17138 .15611 .14241 .1301018............................................................ .19367 .17643 .16094 .14702 .1344919............................................................ .19903 .18157 .16586 .15172 .1389720............................................................ .20452 .18685 .17092 .15655 .1435821............................................................ .21014 .19226 .17612 .16153 .1483322............................................................ .21591 .19783 .18146 .16665 .1532423............................................................ .22185 .20356 .18698 .17195 .1583224............................................................ .22798 .20949 .19270 .17746 .1636125............................................................ .23434 .21565 .19866 .18321 .1691426............................................................ .24094 .22207 .20489 .18922 .1749427............................................................ .24780 .22875 .21138 .19551 .1810228............................................................ .25492 .23570 .21814 .20208 .1873929............................................................ .26226 .24288 .22514 .20889 .1940030............................................................ .26982 .25029 .23239 .21596 .2008831............................................................ .27759 .25792 .23985 .22324 .2079832............................................................ .28557 .26577 .24755 .23078 .2153333............................................................ .29377 .27385 .25548 .23855 .2229334............................................................ .30217 .28214 .26364 .24656 .2307735............................................................ .31079 .29065 .27203 .25481 .2388736............................................................ .31961 .29939 .28065 .26330 .2472137............................................................ .32863 .30833 .28950 .27202 .2557938............................................................ .33784 .31747 .29855 .28096 .2646039............................................................ .34722 .32680 .30780 .29011 .2736340............................................................ .35679 .33633 .31727 .29948 .2829041............................................................ .36654 .34606 .32693 .30908 .2923942............................................................ .37648 .35599 .33683 .31890 .3021343............................................................ .38659 .36610 .34691 .32894 .3120944............................................................ .39687 .37640 .35720 .33918 .3222745............................................................ .40728 .38685 .36765 .34961 .3326546............................................................ .41785 .39746 .37828 .36023 .3432347............................................................ .42856 .40823 .38908 .37103 .3540048............................................................ .43941 .41917 .40006 .38202 .3649949............................................................ .45040 .43025 .41121 .39320 .3761750............................................................ .46153 .44149 .42252 .40457 .3875651............................................................ .47277 .45286 .43398 .41609 .3991152............................................................ .48412 .46435 .44558 .42776 .4108453............................................................ .49556 .47595 .45731 .43958 .4227254............................................................ .50707 .48763 .46913 .45151 .4347355............................................................ .51864 .49939 .48104 .46354 .4468556............................................................ .53026 .51121 .49303 .47567 .4590857............................................................ .54192 .52310 .50510 .48789 .4714358............................................................ .55363 .53503 .51723 .50019 .4838759............................................................ .56538 .54703 .52945 .51258 .4964260............................................................ .57717 .55909 .54173 .52506 .5090661............................................................ .58901 .57120 .55408 .53763 .5218162............................................................ .60087 .58336 .56650 .55028 .5346663............................................................ .61277 .59556 .57898 .56300 .5476064............................................................ .62467 .60778 .59149 .57577 .5606065............................................................ .63655 .62000 .60402 .58857 .57365
66............................................................ .64842 .63221 .61654 .60139 .5867267............................................................ .66023 .64439 .62905 .61420 .5998068............................................................ .67200 .65653 .64154 .62699 .6128969............................................................ .68373 .66865 .65400 .63978 .6259870............................................................ .69541 .68072 .66645 .65257 .6390871............................................................ .70708 .69279 .67890 .66538 .6522272............................................................ .71870 .70484 .69134 .67819 .6653873............................................................ .73025 .71682 .70372 .69095 .6785074............................................................ .74163 .72863 .71595 .70356 .6914775............................................................ .75275 .74019 .72792 .71593 .7042176............................................................ .76360 .75147 .73962 .72802 .7166777............................................................ .77415 .76246 .75102 .73981 .7288378............................................................ .78443 .77318 .76214 .75133 .7407379............................................................ .79448 .78365 .77303 .76261 .7523880............................................................ .80432 .79392 .78371 .77369 .7638481............................................................ .81390 .80393 .79413 .78450 .7750482............................................................ .82317 .81362 .80423 .79499 .7859083............................................................ .83214 .82301 .81402 .80517 .7964584............................................................ .84086 .83214 .82355 .81508 .8067485............................................................ .84935 .84104 .83284 .82476 .8167986............................................................ .85745 .84953 .84172 .83401 .8264087............................................................ .86496 .85741 .84996 .84260 .8353388............................................................ .87189 .86468 .85757 .85054 .8435989............................................................ .87838 .87150 .86471 .85799 .8513590............................................................ .88461 .87806 .87157 .86516 .8588191............................................................ .89055 .88430 .87812 .87200 .8659492............................................................ .89602 .89006 .88416 .87831 .8725293............................................................ .90094 .89524 .88959 .88400 .8784694............................................................ .90530 .89983 .89441 .88904 .8837295............................................................ .90908 .90381 .89359 .89341 .8882896............................................................ .91226 .90716 .90211 .89709 .8921297............................................................ .91510 .91015 .90525 .90038 .8955598............................................................ .91759 .91277 .90800 .90326 .8985599............................................................ .91993 .91524 .91058 .90596 .90137100........................................................... .92225 .91768 .91315 .90865 .90417101........................................................... .92433 .91987 .91544 .91104 .90667102........................................................... .92659 .92225 .91793 .91364 .90938103........................................................... .92943 .92524 .92107 .91692 .91280104........................................................... .93221 .92816 .92413 .92012 .91614105........................................................... .93627 .93244 .92863 .92483 .92105106........................................................... .94257 .93909 .93562 .93217 .92872107........................................................... .95107 .94808 .94509 .94211 .93914108........................................................... .96396 .96173 .95950 .95728 .95505109........................................................... .98400 .98300 .98200 .98100 .98000----------------------------------------------------------------------------------------------------------------
Table E
Table E--Single Life, Unisex--Table Showing the Present Worth of the Remainder Interest in Property Transferred
to a Unitrust Having the Adjusted Payout Rate Shown--Applicable for Transfers After November 30, 1983, and
Before May 1, 1989----------------------------------------------------------------------------------------------------------------
(2) Adjusted payout rate
(1) Age -------------------------------------------------
4.2% 4.4% 4.6% 4.8% 5.0%----------------------------------------------------------------------------------------------------------------0............................................................. .08183 .07527 .06952 .06448 .060051............................................................. .06629 .05945 .05344 .04817 .043542............................................................. .06801 .06098 .05481 .04939 .044603............................................................. .07017 .06297 .05663 .05104 .046114............................................................. .07259 .06520 .05868 .05294 .047865............................................................. .07523 .06765 .06096 .05505 .049826............................................................. .07805 .07029 .06342 .05734 .051957............................................................. .08103 .07307 .06603 .05978 .054238............................................................. .08418 .07603 .06880 .06238 .056669............................................................. .08752 .07917 .07175 .06516 .0592810............................................................ .09103 .08249 .07488 .06811 .0620611............................................................ .09473 .08600 .07820 .07125 .0650312............................................................ .09861 .08968 .08169 .07456 .0681713............................................................ .10261 .09348 .08530 .07799 .0714214............................................................ .10669 .09735 .08899 .08148 .0747415............................................................ .11080 .10126 .09269 .08500 .0780816............................................................ .11491 .10516 .09640 .08852 .0814217............................................................ .11903 .10908 .10012 .09204 .0847518............................................................ .12321 .11304 .10387 .09560 .0881219............................................................ .12747 .11709 .10771 .09923 .0915620............................................................ .13186 .12126 .11168 .10300 .0951321............................................................ .13639 .12558 .11578 .10690 .0988322............................................................ .14108 .13005 .12004 .11094 .1026823............................................................ .14594 .13469 .12446 .11516 .1066924............................................................ .15101 .13954 .12910 .11958 .1109125............................................................ .15632 .14464 .13398 .12426 .1153726............................................................ .16191 .15001 .13914 .12920 .1201127............................................................ .16778 .15567 .14459 .13444 .1251428............................................................ .17394 .16162 .15032 .13997 .1304629............................................................ .18035 .16782 .15632 .14575 .1360430............................................................ .18702 .17429 .16259 .15181 .1418931............................................................ .19393 .18100 .16909 .15811 .1479932............................................................ .20109 .18797 .17586 .16468 .1543633............................................................ .20851 .19520 .18290 .17152 .1610034............................................................ .21618 .20268 .19018 .17861 .1678935............................................................ .22411 .21043 .19775 .18599 .1750836............................................................ .23228 .21844 .20558 .19363 .1825337............................................................ .24071 .22670 .21367 .20154 .1902638............................................................ .24938 .23521 .22201 .20971 .1982539............................................................ .25827 .24396 .23060 .21814 .2065040............................................................ .26741 .25295 .23945 .22682 .2150241............................................................ .27679 .26220 .24855 .23577 .2238142............................................................ .28642 .27172 .25793 .24501 .2328943............................................................ .29629 .28147 .26756 .25450 .2422444............................................................ .30639 .29147 .27745 .26426 .2518645............................................................ .31669 .30169 .28756 .27426 .2617346............................................................ .32722 .31213 .29791 .28450 .2718547............................................................ .33795 .32280 .30849 .29498 .2822248............................................................ .34890 .33370 .31932 .30573 .2928749............................................................ .36007 .34482 .33039 .31672 .3037750............................................................ .37144 .35617 .34170 .32797 .3149451............................................................ .38301 .36773 .35322 .33944 .3263552............................................................ .39476 .37948 .36495 .35113 .3379953............................................................ .40668 .39141 .37688 .36304 .3498654............................................................ .41874 .40350 .38897 .37512 .3619155............................................................ .43093 .41574 .40123 .38739 .3741656............................................................ .44324 .42811 .41364 .39980 .3865757............................................................ .45568 .44062 .42620 .41240 .3991858............................................................ .46823 .45325 .43890 .42514 .4119459............................................................ .48091 .46603 .45175 .43805 .4248960............................................................ .49370 .47893 .46475 .45112 .4380261............................................................ .50661 .49198 .47790 .46436 .4513362............................................................ .51963 .50515 .49120 .47776 .4648163............................................................ .53275 .51844 .50463 .49131 .4784664............................................................ .54596 .53182 .51817 .50498 .4922565............................................................ .55922 .54528 .53180 .51877 .5061666............................................................ .57253 .55880 .54551 .53264 .5201867............................................................ .58586 .57235 .55926 .54657 .5342768............................................................ .59921 .58594 .57306 .56057 .5484569............................................................ .61258 .59956 .58692 .57463 .5627070............................................................ .62597 .61322 .60082 .58877 .5770471............................................................ .63941 .62695 .61481 .60300 .5914972............................................................ .65289 .64073 .62887 .61731 .6060573............................................................ .66635 .65449 .64293 .63165 .6206474............................................................ .67976 .66814 .65688 .64588 .63514
75............................................................ .69275 .68156 .67061 .65990 .6494476............................................................ .70557 .69470 .68407 .67366 .6634877............................................................ .71809 .70756 .69724 .68714 .6772478............................................................ .73033 .72014 .71015 .70036 .6907579............................................................ .74235 .73251 .72284 .71336 .7040580............................................................ .75417 .74468 .73535 .72619 .7171881............................................................ .76573 .75659 .74759 .73875 .7300682............................................................ .77696 .76816 .75951 .75099 .7426183............................................................ .78787 .77942 .77110 .76291 .7548484............................................................ .79852 .79042 .78243 .77457 .7668185............................................................ .80893 .80118 .79353 .78599 .7785686............................................................ .81889 .81148 .80417 .79695 .7898387............................................................ .82816 .82107 .81408 .80716 .8003488............................................................ .83673 .82994 .82324 .81662 .8100789............................................................ .84478 .83828 .83186 .82551 .8192390............................................................ .85253 .84632 .84018 .83410 .8280891............................................................ .85994 .85401 .84813 .84232 .8365692............................................................ .86679 .86111 .85549 .84993 .8444193............................................................ .87296 .86752 .86213 .85679 .8515094............................................................ .87844 .87321 .86803 .86289 .8578095............................................................ .88319 .87815 .87314 .86818 .8632796............................................................ .88719 .88230 .87745 .87264 .8678797............................................................ .89076 .88601 .88129 .87661 .8719798............................................................ .89388 .88925 .88465 .88009 .8755699............................................................ .89682 .89230 .88781 .88336 .87894100........................................................... .89973 .89533 .89095 .88660 .88228101........................................................... .90233 .89802 .89374 .88948 .88526102........................................................... .90515 .90094 .89676 .89260 .88848103........................................................... .90871 .90464 .90059 .89656 .89256104........................................................... .91217 .90823 .90431 .90040 .89652105........................................................... .91729 .91354 .90981 .90610 .90240106........................................................... .92529 .92187 .91846 .91507 .91169107........................................................... .93617 .93322 .93027 .92732 .92439108........................................................... .95283 .95062 .94840 .94619 .94398109........................................................... .97900 .97800 .97700 .97600 .97500----------------------------------------------------------------------------------------------------------------
Table E
Table E--Single Life, Unisex--Table Showing the Present Worth of the Remainder Interest in Property Transferred
to a Unitrust Having the Adjusted Payout Rate Shown--Applicable for Transfers After November 30, 1983, and
Before May 1, 1989----------------------------------------------------------------------------------------------------------------
(2) Adjusted payout rate
(1) Age -------------------------------------------------
5.2% 5.4% 5.6% 5.8% 6.0%----------------------------------------------------------------------------------------------------------------0............................................................. .05615 .05272 .04969 .04701 .044641............................................................. .03945 .03585 .03268 .02986 .027372............................................................. .04039 .03667 .03337 .03046 .027873............................................................. .04176 .03791 .03450 .03147 .028794............................................................. .04336 .03938 .03585 .03272 .029935............................................................. .04518 .04107 .03741 .03416 .031276............................................................. .04717 .04292 .03914 .03577 .032767............................................................. .04929 .04490 .04099 .03750 .034388............................................................. .05158 .04704 .04300 .03938 .036159............................................................. .05404 .04936 .04518 .04143 .0380810............................................................ .05666 .05183 .04751 .04364 .0401611............................................................ .05947 .05449 .05003 .04602 .0424212............................................................ .06245 .05731 .05271 .04856 .0448413............................................................ .06554 .06025 .05549 .05121 .0473514............................................................ .06869 .06324 .05834 .05391 .0499215............................................................ .07186 .06625 .06119 .05662 .0525016............................................................ .07502 .06924 .06403 .05931 .0550417............................................................ .07817 .07223 .06685 .06199 .0575718............................................................ .08136 .07524 .06970 .06468 .0601219............................................................ .08462 .07832 .07261 .06743 .0627220............................................................ .08800 .08152 .07564 .07029 .0654221............................................................ .09151 .08485 .07879 .07327 .0682422............................................................ .09516 .08831 .08207 .07638 .0711923............................................................ .09897 .09193 .08551 .07964 .0742824............................................................ .10299 .09576 .08915 .08310 .0775625............................................................ .10725 .09982 .09302 .08679 .0810826............................................................ .11179 .10416 .09717 .09075 .0848627............................................................ .11661 .10878 .10160 .09500 .0889228............................................................ .12173 .11370 .10632 .09953 .0932829............................................................ .12710 .11888 .11130 .10432 .0978830............................................................ .13276 .12433 .11656 .10938 .1027631............................................................ .13865 .13002 .12205 .11469 .1078732............................................................ .14482 .13599 .12783 .12026 .1132633............................................................ .15126 .14223 .13387 .12612 .1189234............................................................ .15796 .14874 .14018 .13223 .1248535............................................................ .16494 .15553 .14678 .13864 .1310736............................................................ .17221 .16260 .15366 .14533 .1375737............................................................ .17975 .16996 .16082 .15231 .1443538............................................................ .18756 .17758 .16826 .15955 .1514239............................................................ .19563 .18547 .17597 .16708 .1587540............................................................ .20397 .19364 .18395 .17488 .1663841............................................................ .21259 .20209 .19223 .18298 .1743042............................................................ .22152 .21084 .20082 .19140 .1825443............................................................ .23071 .21988 .20969 .20010 .1910744............................................................ .24019 .22920 .21885 .20910 .1999145............................................................ .24992 .23878 .22828 .21837 .2090246............................................................ .25991 .24864 .23799 .22793 .2184247............................................................ .27016 .25876 .24798 .23777 .2281248............................................................ .28070 .26918 .25826 .24792 .2381249............................................................ .29150 .27987 .26883 .25837 .2484350............................................................ .30258 .29084 .27970 .26911 .2590551............................................................ .31391 .30208 .29084 .28014 .2699652............................................................ .32548 .31358 .30224 .29144 .2811553............................................................ .33729 .32532 .31390 .30302 .2926354............................................................ .34931 .33728 .32579 .31482 .3043455............................................................ .36152 .34945 .33790 .32686 .3163156............................................................ .37392 .36181 .35022 .33912 .3285057............................................................ .38652 .37438 .36276 .35162 .3409358............................................................ .39929 .38715 .37550 .36432 .3535959............................................................ .41226 .40013 .38847 .37727 .3665060............................................................ .42542 .41331 .40165 .39044 .3796561............................................................ .43878 .42670 .41506 .40386 .3930662............................................................ .45233 .44029 .42869 .41750 .4067163............................................................ .46606 .45409 .44253 .43138 .4206064............................................................ .47994 .46805 .45656 .44545 .4347165............................................................ .49397 .48217 .47076 .45971 .4490266............................................................ .50811 .49642 .48510 .47413 .4635067............................................................ .52235 .51079 .49957 .48869 .4781468............................................................ .53668 .52525 .51416 .50339 .4929369............................................................ .55110 .53983 .52888 .51823 .5078870............................................................ .56563 .55453 .54373 .53322 .5229971............................................................ .58029 .56938 .55875 .54839 .5383072............................................................ .59507 .58436 .57392 .56374 .5538073............................................................ .60990 .59941 .58917 .57918 .5694274............................................................ .62465 .61439 .60437 .59458 .5850275............................................................ .63920 .62919 .61940 .60983 .6004676............................................................ .65351 .64375 .63419 .62484 .6156877............................................................ .66755 .65804 .64873 .63961 .6306678............................................................ .68133 .67209 .66303 .65414 .6454279............................................................ .69492 .68595 .67714 .66850 .6600180............................................................ .70834 .69965 .69111 .68272 .6744881............................................................ .72151 .71311 .70484 .69671 .6887282............................................................ .73436 .72624 .71825 .71039 .7026583............................................................ .74689 .73906 .73135 .72376 .71627
84............................................................ .75917 .75163 .74421 .73688 .7296785............................................................ .77122 .76398 .75685 .74980 .7428686............................................................ .78280 .77586 .76901 .76224 .7555687............................................................ .79359 .78693 .78036 .77386 .7674488............................................................ .80360 .79720 .79088 .78463 .7784689............................................................ .81302 .80688 .80081 .79480 .7888690............................................................ .82213 .81624 .81041 .80465 .7989491............................................................ .83086 .82522 .81963 .81410 .8086292............................................................ .83895 .83354 .82818 .82287 .8176293............................................................ .84626 .84106 .83591 .83081 .8257594............................................................ .85275 .84774 .84278 .83787 .8329995............................................................ .85839 .85355 .84876 .84400 .8392996............................................................ .86313 .85844 .85378 .84916 .8445897............................................................ .86737 .86280 .85826 .85377 .8493098............................................................ .87107 .86661 .86218 .85779 .8534399............................................................ .87455 .87019 .86586 .86157 .85730100........................................................... .87800 .87374 .86951 .86532 .86115101........................................................... .88106 .87689 .87275 .86863 .86455102........................................................... .88437 .88030 .87625 .87222 .86822103........................................................... .88858 .88463 .88070 .87679 .87290104........................................................... .89266 .88882 .88500 .88120 .87741105........................................................... .89872 .89506 .89141 .88778 .88417106........................................................... .90832 .90496 .90161 .89828 .89496107........................................................... .92146 .91854 .91562 .91271 .90981108........................................................... .94177 .93956 .93736 .93516 .93296109........................................................... .97400 .97300 .97200 .97100 .97000----------------------------------------------------------------------------------------------------------------
Table E
Table E--Single Life, Unisex--Table Showing the Present Worth of the Remainder Interest in Property Transferred
to a Unitrust Having the Adjusted Payout Rate Shown--Applicable for Transfers After November 30, 1983, and
Before May 1, 1989----------------------------------------------------------------------------------------------------------------
(2) Adjusted Payout Rate
(1) Age -------------------------------------------------
6.2% 6.4% 6.6% 6.8% 7.0%----------------------------------------------------------------------------------------------------------------0............................................................. .04253 .04066 .03899 .03751 .036181............................................................. .02516 .02320 .02145 .01989 .018502............................................................. .02557 .02353 .02171 .02008 .018623............................................................. .02640 .02427 .02237 .02067 .019154............................................................. .02744 .02523 .02325 .02147 .019885............................................................. .02868 .02638 .02431 .02246 .020806............................................................. .03008 .02767 .02552 .02359 .021857............................................................. .03159 .02909 .02685 .02483 .023028............................................................. .03325 .03065 .02831 .02621 .024329............................................................. .03507 .03236 .02993 .02774 .0257610............................................................ .03704 .03423 .03170 .02941 .0273511............................................................ .03918 .03626 .03363 .03125 .0291012............................................................ .04148 .03845 .03571 .03323 .0309913............................................................ .04387 .04073 .03788 .03531 .0329714............................................................ .04632 .04305 .04010 .03742 .0349915............................................................ .04876 .04538 .04231 .03953 .0369916............................................................ .05118 .04767 .04449 .04159 .0389617............................................................ .05357 .04994 .04663 .04362 .0408818............................................................ .05598 .05221 .04878 .04565 .0428019............................................................ .05843 .05453 .05097 .04772 .0447620............................................................ .06099 .05694 .05325 .04988 .0467921............................................................ .06365 .05946 .05564 .05213 .0489322............................................................ .06644 .06210 .05813 .05449 .0511623............................................................ .06937 .06488 .06076 .05699 .0535224............................................................ .07249 .06784 .06357 .05965 .0560525............................................................ .07584 .07103 .06660 .06254 .0587926............................................................ .07945 .07447 .06989 .06567 .0617827............................................................ .08334 .07819 .07345 .06907 .0650328............................................................ .08751 .08219 .07729 .07275 .0685629............................................................ .09194 .08645 .98137 .07667 .0723330............................................................ .09663 .09096 .08572 .08086 .0763531............................................................ .10156 .09572 .09030 .08527 .0806032............................................................ .10677 .10074 .09515 .08995 .0851233............................................................ .11224 .10604 .10027 .09490 .0899034............................................................ .11798 .11159 .10564 .10010 .0949435............................................................ .12401 .11744 .11131 .10560 .1002636............................................................ .13033 .12357 .11727 .11137 .1058637............................................................ .13693 .12999 .12350 .11743 .1117538............................................................ .14380 .13668 .13002 .12377 .1179139............................................................ .15096 .14366 .13681 .13038 .1243640............................................................ .15841 .15092 .14390 .13729 .1310941............................................................ .16615 .15848 .15128 .14450 .1381242............................................................ .17421 .16637 .15899 .15204 .1454943............................................................ .18257 .17456 .16700 .15988 .1531644............................................................ .19124 .18306 .17533 .16804 .1611545............................................................ .20018 .19184 .18395 .17649 .1694346............................................................ .20943 .20092 .19287 .18524 .1780247............................................................ .21897 .21030 .20209 .19431 .1869248............................................................ .22883 .22001 .21165 .20371 .1961649............................................................ .23900 .23004 .22152 .21343 .2057350............................................................ .24948 .24039 .23173 .22349 .2156551............................................................ .26027 .25104 .24225 .23387 .2258952............................................................ .27135 .26200 .25308 .24457 .2364553............................................................ .28271 .27325 .26421 .25558 .2473354............................................................ .29433 .28476 .27561 .26686 .2584855............................................................ .30621 .29654 .28728 .27842 .2699356............................................................ .31832 .30856 .29921 .29025 .2816557............................................................ .33068 .32085 .31142 .30236 .2936758............................................................ .34329 .33339 .32388 .31474 .3059559............................................................ .35615 .34620 .33662 .32741 .3185560............................................................ .36927 .35927 .34964 .34037 .3314361............................................................ .38265 .37262 .36295 .35362 .3446362............................................................ .39630 .38625 .37655 .36718 .3581463............................................................ .41020 .40014 .39043 .38104 .3719664............................................................ .42432 .41428 .40456 .39516 .3860665............................................................ .43866 .42864 .41893 .40953 .4004266............................................................ .45320 .44321 .43353 .42414 .4150367............................................................ .46790 .45796 .44832 .43896 .4298768............................................................ .48277 .47289 .46330 .45398 .4449269............................................................ .49781 .48802 .47849 .46923 .4602170............................................................ .51303 .50333 .49389 .48470 .4757471............................................................ .52847 .51888 .50954 .50044 .4915672............................................................ .54412 .53466 .52544 .51644 .5076673............................................................ .55990 .55059 .54151 .52363 .5239674............................................................ .57566 .56652 .55758 .54885 .5403075............................................................ .59129 .58232 .57354 .56496 .5565576............................................................ .60671 .59792 .58932 .58089 .5726377............................................................ .62189 .61330 .60487 .59661 .5885178............................................................ .63687 .62847 .62024 .61215 .6042279............................................................ .65168 .64349 .63546 .62756 .6198180............................................................ .66637 .65841 .65058 .64289 .6353281............................................................ .68085 .67312 .66551 .65802 .6506682............................................................ .69503 .68753 .68014 .67287 .6657183............................................................ .70890 .70164 .69448 .68743 .6804884............................................................ .72255 .71553 .70861 .70179 .6950685............................................................ .73600 .72924 .72257 .71598 .7094886............................................................ .74897 .7446 .73693 .72969 .7234287............................................................ .76109 .75483 .74864 .74252 .7364788............................................................ .77235 .76631 .76035 .75445 .7486289............................................................ .78298 .77717 .77142 .76573 .7601190............................................................ .79329 .78770 .78217 .77669 .7712791............................................................ .80320 .79783 .79252 .78725 .7820492............................................................ .81241 .80725 .80214 .79708 .79206
93............................................................ .82074 .81578 .81086 .80598 .8011594............................................................ .82816 .82337 .81862 .81391 .8092495............................................................ .83461 .82997 .82537 .82081 .8162996............................................................ .84003 .83552 .82105 .82661 .8222197............................................................ .84487 .84048 .83612 .82179 .8275098............................................................ .84910 .84481 .84054 .83631 .8321199............................................................ .85307 .84887 .84469 .84055 .83644100........................................................... .85701 .85290 .84882 .84476 .84073101........................................................... .86049 .85645 .85244 .84846 .84451102........................................................... .86424 .86029 .85637 .85247 .84859103........................................................... .86904 .86520 .86138 .85758 .85381104........................................................... .87365 .86991 .86619 .86249 .85880105........................................................... .88058 .87700 .87343 .86988 .86635106........................................................... .89165 .88835 .88506 .88179 .87852107........................................................... .90692 .90404 .90116 .89829 .89542108........................................................... .93077 .92858 .92639 .92420 .92201109........................................................... .96900 .96800 .96700 .96600 .96500----------------------------------------------------------------------------------------------------------------
Table E
Table E--Single Life, Unisex--Table Showing the Present Worth of the Remainder Interest in Property Transferred
to a Unitrust Having the Adjusted Payout Rate Shown--Applicable for Transfers After November 30, 1983, and
Before May 1, 1989----------------------------------------------------------------------------------------------------------------
(2) Adjusted payout rate
(1) Age -------------------------------------------------
7.2% 7.4% 7.6% 7.8% 8.0%----------------------------------------------------------------------------------------------------------------0............................................................. .03499 .03392 .03296 .03209 .031301............................................................. .01725 .01613 .01513 .01422 .013402............................................................. .01732 .01615 .01509 .01414 .013293............................................................. .01778 .01656 .01545 .01446 .013564............................................................. .01846 .01717 .01601 .01497 .014025............................................................. .01930 .01796 .01674 .01574 .014656............................................................. .02029 .01888 .01761 .01645 .015417............................................................. .02138 .01991 .01857 .01736 .016278............................................................. .02261 .02106 .01966 .01839 .017249............................................................. .02397 .02236 .02089 .01956 .0183510............................................................ .02548 .02379 .02225 .02086 .0195911............................................................ .02715 .02538 .02377 .02231 .0209812............................................................ .02895 .02710 .02542 .02389 .0225013............................................................ .03085 .02892 .02716 .02556 .0241014............................................................ .03278 .03076 .02893 .02725 .0257215............................................................ .03469 .03259 .03067 .02892 .0273216............................................................ .03656 .03437 .03237 .03054 .0288617............................................................ .03938 .03610 .03401 .03210 .0303518............................................................ .04020 .03782 .03564 .03364 .0318119............................................................ .04204 .03956 .03729 .03520 .0332820............................................................ .04397 .04138 .03901 .03683 .0348321............................................................ .04599 .04329 .04081 .03853 .0364422............................................................ .04810 .04529 .04270 .04032 .0381323............................................................ .05033 .04740 .04470 .04222 .0399224............................................................ .05273 .04968 .04686 .04427 .0418725............................................................ .05534 .05216 .04922 .04651 .0440026............................................................ .05819 .05488 .05182 .04898 .0463627............................................................ .06130 .05785 .05466 .05170 .0489628............................................................ .06468 .06109 .05777 .05468 .0518229............................................................ .06830 .06457 .06110 .05789 .0549030............................................................ .07217 .06829 .06469 .06134 .0582231............................................................ .07627 .07224 .06849 .06500 .0617432............................................................ .08062 .07644 .07254 .06891 .0655233............................................................ .08524 .08090 .07686 .07308 .0695534............................................................ .09012 .08562 .08142 .07749 .0738235............................................................ .09528 .09062 .08626 .08218 .0783636............................................................ .10071 .09589 .09137 .08714 .0831737............................................................ .10643 .10144 .09676 .09237 .0882538............................................................ .11242 .10727 .10243 .09788 .0936139............................................................ .11869 .11337 .10837 .10366 .0992340............................................................ .12526 .11977 .11460 .10973 .1051441............................................................ .13212 .12646 .12113 .11609 .1113542............................................................ .13931 .13349 .12799 .12279 .1178943............................................................ .14681 .14082 .13515 .12980 .1247344............................................................ .15463 .14847 .14264 .13712 .1318945............................................................ .16274 .15642 .15042 .14474 .1393546............................................................ .17117 .16468 .15853 .15268 .1471347............................................................ .17991 .17326 .16694 .16094 .1552348............................................................ .18900 .18219 .17571 .16955 .1636849............................................................ .19841 .19145 .18481 .17850 .1724850............................................................ .20818 .20106 .19428 .18781 .1816351............................................................ .21827 .21101 .20407 .19745 .1911352............................................................ .22869 .22129 .21421 .20745 .2009853............................................................ .23944 .23190 .22468 .21778 .2111754............................................................ .25047 .24280 .23545 .22841 .2216755............................................................ .26180 .25400 .24653 .23936 .2324956............................................................ .27341 .26550 .25790 .25061 .2436157............................................................ .28532 .27729 .26959 .26218 .2550558............................................................ .29751 .28938 .28157 .27405 .2668159............................................................ .31001 .30180 .29388 .28626 .2789260............................................................ .32282 .31452 .30652 .29880 .2913661............................................................ .33595 .32758 .31950 .31169 .3041662............................................................ .34941 .34097 .33282 .32494 .3173363............................................................ .36318 .35469 .34648 .33854 .3308564............................................................ .37725 .36872 .36046 .35246 .3447265............................................................ .39159 .38304 .37474 .36670 .3589166............................................................ .40620 .39763 .38931 .38124 .3734067............................................................ .42104 .41247 .40414 .39605 .3881968............................................................ .43611 .42755 .41923 .41113 .4032669............................................................ .45144 .44290 .43459 .42650 .4186370............................................................ .46702 .45852 .45025 .44218 .4343271............................................................ .48291 .47447 .46623 .45820 .4503772............................................................ .49909 .49072 .48255 .47458 .4667973............................................................ .51549 .50721 .49912 .49912 .4834974............................................................ .53195 .52377 .51578 .50796 .5003175............................................................ .54832 .54027 .53238 .52466 .5171076............................................................ .56454 .55661 .54884 .54123 .5337777............................................................ .58057 .57278 .56514 .55765 .5503078............................................................ .59644 .58879 .58129 .58393 .5667079............................................................ .61219 .60471 .59736 .59013 .5830480............................................................ .62788 .62057 .61338 .60632 .5993681............................................................ .64341 .63628 .62926 .62236 .6155682............................................................ .65866 .65172 .64488 .63815 .6315183............................................................ .67364 .66689 .66024 .65369 .6472384............................................................ .68843 .68189 .67544 .66907 .6627985............................................................ .70307 .69674 .69050 .68433 .6782586............................................................ .71723 .71112 .70508 .69912 .6932387............................................................ .73050 .72460 .71877 .71300 .7073188............................................................ .74285 .73715 .73151 .72593 .7204289............................................................ .75454 .74903 .74358 .73819 .7328690............................................................ .76591 .76060 .75534 .75014 .7449991............................................................ .77688 .77176 .76670 .76169 .7567292............................................................ .78709 .78217 .77729 .77245 .7676693............................................................ .79635 .79160 .78690 .78223 .7776194............................................................ .80461 .80002 .79547 .79096 .7864895............................................................ .81180 .80735 .80394 .79856 .7942196............................................................ .81784 .81351 .80921 .80494 .8007197............................................................ .82324 .81901 .81481 .81065 .8065198............................................................ .82794 .82380 .81969 .81562 .8115799............................................................ .83235 .82830 .83427 .82028 .81631100........................................................... .83674 .83276 .82882 .82490 .82101101........................................................... .84058 .83668 .83280 .82895 .82512
102........................................................... .84474 .84091 .83710 .83332 .82956103........................................................... .85006 .84633 .84262 .83893 .83526104........................................................... .85514 .85150 .84787 .84427 .84068105........................................................... .86284 .85934 .85585 .85239 .84893106........................................................... .87527 .87204 .86881 .86559 .86239107........................................................... .89257 .88972 .88688 .88404 .88121108........................................................... .91983 .91765 .91547 .91330 .91113109........................................................... .96400 .96300 .96200 .96100 .96000----------------------------------------------------------------------------------------------------------------
Table E
Table E--Single Life, Unisex--Table Showing the Present Worth of the Remainder Interest in Property Transferred
to a Unitrust Having the Adjusted Payout Rate Shown--Applicable for Transfers After November 30, 1983, and
Before May 1, 1989----------------------------------------------------------------------------------------------------------------
(2) Adjusted payout rate
(1) Age -------------------------------------------------
8.2% 8.4% 8.6% 8.8% 9.0%----------------------------------------------------------------------------------------------------------------0............................................................. .03059 .02995 .02936 .02882 .028331............................................................. .01267 .01200 .01139 .01084 .010332............................................................. .01251 .01181 .01117 .01059 .010063............................................................. .01274 .01200 .01133 .01072 .010164............................................................. .01316 .01239 .01168 .01103 .010445............................................................. .01375 .01293 .01218 .01150 .010886............................................................. .01446 .01360 .01281 .01209 .011447............................................................. .01527 .01436 .01353 .01277 .012088............................................................. .01619 .01523 .01436 .01356 .012839............................................................. .01725 .01624 .01532 .01448 .0137010............................................................ .01843 .01737 .01640 .01551 .0147011............................................................ .01976 .01865 .01763 .01669 .0158312............................................................ .02122 .02005 .01898 .01800 .0170913............................................................ .02276 .02153 .02041 .01937 .0184214............................................................ .02432 .02303 .02185 .02077 .0197715............................................................ .02585 .02451 .02327 .02213 .0210816............................................................ .02732 .02591 .02462 .02342 .0223217............................................................ .02874 .02726 .02590 .02465 .0234918............................................................ .03013 .02858 .02715 .02584 .0246219............................................................ .03152 .02990 .02841 .02703 .0257520............................................................ .03298 .03128 .02971 .02826 .0269221............................................................ .03451 .03272 .03108 .02956 .0281522............................................................ .03611 .03424 .03251 .03091 .0294423............................................................ .03781 .03585 .03404 .03236 .0308124............................................................ .03965 .03760 .03570 .03393 .0323025............................................................ .04168 .03953 .03753 .03568 .0339626............................................................ .04393 .04168 .03958 .03764 .0358327............................................................ .04642 .04406 .04186 .03982 .0379228............................................................ .04916 .04669 .04439 .04224 .0402529............................................................ .05212 .04953 .04712 .04487 .0427730............................................................ .05531 .05260 .05008 .04772 .0455231............................................................ .05871 .05588 .05324 .05077 .0484632............................................................ .06236 .05940 .05663 .05405 .0516333............................................................ .06625 .06316 .06027 .05756 .0550234............................................................ .07038 .06716 .06414 .06131 .0586535............................................................ .07478 .07142 .06827 .06531 .0625336............................................................ .07944 .07595 .07266 .06957 .0666737............................................................ .08438 .08074 .07732 .07410 .0710638............................................................ .08958 .08580 .08223 .07888 .0757139............................................................ .09506 .09112 .08742 .08392 .0806140............................................................ .10081 .09673 .09288 .08924 .0858041............................................................ .10687 .10263 .09863 .09484 .0912642............................................................ .11325 .10886 .10471 .10078 .0970543............................................................ .11993 .11539 .11109 .10701 .1031444............................................................ .12694 .12224 .11779 .11356 .1095545............................................................ .13424 .12939 .12478 .12040 .1162446............................................................ .14186 .13686 .13210 .12757 .1232647............................................................ .14980 .14464 .13973 .13505 .1305948............................................................ .15810 .15278 .14772 .14289 .1382849............................................................ .16674 .16127 .15605 .15107 .1463150............................................................ .17574 .17012 .16475 .15962 .1547251............................................................ .18510 .17932 .17381 .16853 .1634852............................................................ .19480 .18888 .18322 .17779 .1726053............................................................ .20484 .19878 .19298 .18741 .1820854............................................................ .21520 .20901 .20306 .19735 .1918855............................................................ .22589 .21955 .21347 .20763 .2020256............................................................ .23688 .23041 .22420 .21822 .2124857............................................................ .24820 .24161 .23527 .22917 .2232958............................................................ .25984 .25313 .24667 .24044 .2344459............................................................ .27184 .26501 .25843 .25209 .2459660............................................................ .28417 .27724 .27055 .26409 .2578661............................................................ .29688 .28985 .28306 .27650 .2701562............................................................ .30996 .30284 .29596 .28929 .2828563............................................................ .32341 .31621 .30924 .30249 .2959564............................................................ .33721 .32994 .32289 .31605 .3094365............................................................ .35134 .34401 .33689 .32999 .3232966............................................................ .36580 .35841 .35124 .34427 .3375067............................................................ .38055 .37312 .36590 .35889 .3520668............................................................ .39559 .38814 .38089 .37383 .3669669............................................................ .41096 .40349 .39622 .38913 .3822270............................................................ .42665 .41918 .41190 .40480 .3978771............................................................ .44273 .43527 .42799 .42089 .4139572............................................................ .45919 .45176 .44450 .43741 .4304973............................................................ .47594 .46856 .46134 .45428 .4473874............................................................ .49283 .48550 .47834 .47132 .4644675............................................................ .50969 .50244 .49534 .48838 .4815776............................................................ .52646 .51929 .51226 .50537 .4986277............................................................ .54309 .53601 .52907 .52226 .5155878............................................................ .55960 .55263 .54579 .53907 .5324779............................................................ .57606 .56921 .56248 .55586 .5493580............................................................ .59253 .58580 .57919 .57269 .5662981............................................................ .60887 .60229 .59581 .58943 .5831582............................................................ .62498 .61855 .61221 .60597 .5998283............................................................ .64086 .63459 .62840 .62230 .6162984............................................................ .65660 .65049 .64447 .63852 .6326685............................................................ .67224 .66631 .66046 .65468 .6489886............................................................ .68742 .68167 .67600 .67040 .6648687............................................................ .70168 .69611 .69061 .68518 .6798088............................................................ .71497 .70958 .70425 .69897 .6937689............................................................ .72758 .72236 .71720 .71208 .7070290............................................................ .73989 .73484 .72985 .72490 .7200091............................................................ .75180 .74693 .74210 .73732 .7325992............................................................ .76292 .75821 .75355 .74894 .7443693............................................................ .77302 .76848 .76397 .75951 .7550894............................................................ .78204 .77764 .77328 .76895 .7646695............................................................ .78991 .78563 .78139 .77719 .7730296............................................................ .79651 .79234 .78821 .78411 .7800397............................................................ .80241 .79834 .79430 .79029 .7863098............................................................ .80755 .80356 .79960 .79567 .7917699............................................................ .81236 .80845 .80456 .80071 .79687100........................................................... .81715 .81331 .80949 .80571 .80195101........................................................... .82132 .81754 .81379 .81006 .80636102........................................................... .82582 .82211 .81842 .81476 .81111103........................................................... .83162 .82799 .82439 .82080 .81724104........................................................... .83711 .83356 .83003 .82652 .82302105........................................................... .84550 .84208 .83867 .83528 .83191106........................................................... .85920 .85602 .85285 .84969 .84655107........................................................... .87839 .87558 .87277 .86997 .86718108........................................................... .90896 .90679 .90463 .90246 .90030109........................................................... .95900 .95800 .95700 .95600 .95500----------------------------------------------------------------------------------------------------------------
Table E
Table E--Single Life, Unisex--Table Showing the Present Worth of the Remainder Interest in Property Transferred
to a Unitrust Having the Adjusted Payout Rate Shown--Applicable for Transfers After November 30, 1983, and
Before May 1, 1989----------------------------------------------------------------------------------------------------------------
(2) Adjusted payout Rate
(1) Age -------------------------------------------------
9.2% 9.4% 9.6% 9.8% 10.0%----------------------------------------------------------------------------------------------------------------0............................................................. .02788 .02747 .02709 .02673 .026411............................................................. .00987 .00945 .00906 .00871 .008382............................................................. .00957 .00913 .00872 .00835 .008003............................................................. .00965 .00918 .00875 .00836 .007994............................................................. .00991 .00941 .00896 .00854 .008155............................................................. .01031 .00979 .00931 .00887 .008466............................................................. .01084 .01028 .00978 .00931 .008887............................................................. .01144 .01086 .01032 .00983 .009378............................................................. .01216 .01154 .01097 .01044 .009969............................................................. .01299 .01234 .01174 .01118 .0106710............................................................ .01395 .01326 .01262 .01204 .0114911............................................................ .01504 .01432 .01364 .01302 .0124512............................................................ .01626 .01549 .01478 .01413 .0135213............................................................ .01755 .01674 .01599 .01530 .0146614............................................................ .01885 .01800 .01721 .01648 .0158115............................................................ .02011 .01922 .01839 .01762 .0169116............................................................ .02130 .02036 .01949 .01869 .0179417............................................................ .02243 .02144 .02052 .01967 .0188818............................................................ .02350 .02246 .02150 .02061 .0197819............................................................ .02457 .02348 .02247 .02153 .0206520............................................................ .02569 .02454 .02347 .02248 .0215621............................................................ .02685 .02564 .02452 .02347 .0225022............................................................ .02806 .02679 .02561 .02451 .0234823............................................................ .02936 .02802 .02677 .02561 .0245324............................................................ .03078 .02937 .02805 .02683 .0256925............................................................ .03236 .03087 .02949 .02820 .0269926............................................................ .03415 .03258 .03112 .02975 .0284827............................................................ .03615 .03450 .03295 .03151 .0301728............................................................ .03838 .03664 .03502 .03350 .0320829............................................................ .04081 .03898 .03727 .03567 .0341630............................................................ .04346 .04154 .03973 .03804 .0364631............................................................ .04630 .04427 .04237 .04059 .0389232............................................................ .04936 .04723 .04523 .04335 .0415933............................................................ .05264 .05041 .04831 .04633 .0444834............................................................ .05615 .05381 .05160 .04952 .0475735............................................................ .05992 .05746 .05514 .05296 .0509036............................................................ .06393 .06135 .05892 .05663 .0544737............................................................ .06820 .06550 .06295 .06055 .0582838............................................................ .07272 .06990 .06723 .06471 .0623339............................................................ .07749 .07454 .07175 .06912 .0666240............................................................ .08254 .07946 .07655 .07379 .0711741............................................................ .08787 .08466 .08162 .07073 .0759942............................................................ .09352 .09018 .08700 .08399 .0811243............................................................ .09947 .09599 .09268 .08953 .0865444............................................................ .10573 .10211 .09866 .09539 .0922745............................................................ .11229 .10852 .10494 .10152 .0982746............................................................ .11916 .11525 .11153 .10798 .1045947............................................................ .12634 .12229 .11843 .11474 .1112248............................................................ .13388 .12969 .12568 .12186 .1182049............................................................ .14177 .13743 .13329 .12932 .1255350............................................................ .15003 .14555 .14126 .13716 .1332251............................................................ .15865 .15402 .14959 .14534 .1412752............................................................ .16763 .16286 .15828 .15390 .1496953............................................................ .17696 .17205 .16734 .16281 .1584754............................................................ .18662 .18157 .17672 .17206 .1675855............................................................ .19662 .19144 .18645 .18165 .1770356............................................................ .20695 .20163 .19651 .19157 .1868257............................................................ .21763 .21218 .20693 .20186 .1969858............................................................ .22865 .22307 .21769 .21250 .2074959............................................................ .24005 .23435 .22885 .22353 .2183960............................................................ .25183 .24601 .24038 .23494 .2296961............................................................ .26401 .25808 .25234 .24678 .2414162............................................................ .27661 .27056 .26471 .25905 .2535663............................................................ .28961 .28347 .27752 .27175 .2661564............................................................ .30300 .29677 .29072 .28486 .2791665............................................................ .31678 .31046 .30433 .29837 .2925966............................................................ .33093 .32454 .31832 .31228 .3064167............................................................ .34542 .33897 .33268 .32657 .3206268............................................................ .36027 .35376 .34742 .34124 .3352269............................................................ .37550 .36894 .36255 .35632 .3502470............................................................ .39111 .38452 .37809 .37182 .3657071............................................................ .40719 .40058 .39412 .38782 .3816672............................................................ .42372 .41710 .41064 .40432 .3981473............................................................ .44062 .43402 .42756 .42124 .4150674............................................................ .45774 .45116 .44471 .43840 .4322375............................................................ .47489 .46834 .46193 .45565 .4494976............................................................ .49199 .48550 .47913 .47288 .4667577............................................................ .50902 .50258 .49626 .49006 .4839778............................................................ .52598 .51962 .51336 .50721 .5011779............................................................ .54295 .53667 .53049 .52441 .5184380............................................................ .55999 .55380 .54771 .54171 .5358181............................................................ .57697 .57088 .56489 .55899 .5531782............................................................ .59375 .58778 .58190 .57610 .5703983............................................................ .61036 .60451 .59875 .59306 .5874684............................................................ .62687 .62116 .61553 .60997 .6044885............................................................ .64335 .63779 .63230 .62688 .6215286............................................................ .65939 .65398 .64864 .64337 .6381687............................................................ .67449 .66924 .66405 .65892 .6538488............................................................ .68860 .68350 .67845 .67346 .6685289............................................................ .70202 .69706 .69216 .68731 .6825090............................................................ .71515 .71035 .70559 .70088 .6962291............................................................ .72790 .72325 .71865 .71409 .7095792............................................................ .73982 .73533 .73087 .72646 .7220893............................................................ .75069 .74634 .74202 .73774 .7335094............................................................ .76040 .75618 .75199 .74784 .7437295............................................................ .76888 .76477 .76070 .75666 .7526596............................................................ .77599 .77199 .76801 .76406 .7601497............................................................ .78235 .77843 .77454 .77067 .7668498............................................................ .78789 .78404 .78022 .77642 .7726699............................................................ .79307 .78929 .78554 .78181 .77811100........................................................... .79821 .79450 .79081 .78715 .78351101........................................................... .80268 .79902 .79539 .79178 .78819102........................................................... .80749 .80389 .80031 .79676 .79322103........................................................... .81370 .81018 .80668 .80319 .79973104........................................................... .81955 .81609 .81265 .80923 .80582105........................................................... .82855 .82520 .82187 .81856 .81526106........................................................... .84341 .84029 .83718 .83408 .83099107........................................................... .86439 .86162 .85884 .85608 .85332108........................................................... .89815 .89599 .89384 .89169 .88955109........................................................... .95400 .95300 .95200 .95100 .95000----------------------------------------------------------------------------------------------------------------
Table E
Table E--Single Life, Unisex--Table Showing the Present Worth of the Remainder Interest in Property Transferred
to a Unitrust Having the Adjusted Payout Rate Shown--Applicable for Transfers After November 30, 1983, and
Before May 1, 1989----------------------------------------------------------------------------------------------------------------
(2) Adjusted payout rate
(1) Age -------------------------------------------------
10.2% 10.4% 10.6% 10.8% 11.0%----------------------------------------------------------------------------------------------------------------0............................................................. .02610 .02582 .02556 .02531 .025081............................................................. .00807 .00779 .00753 .00729 .007072............................................................. .00769 .00739 .00712 .00686 .006633............................................................. .00766 .00735 .00706 .00679 .006544............................................................. .00780 .00747 .00716 .00688 .006625............................................................. .00808 .00773 .00741 .00711 .006836............................................................. .00848 .00811 .00776 .00744 .007157............................................................. .00894 .00855 .00819 .00785 .007538............................................................. .00951 .00909 .00871 .00835 .00801
9............................................................. .01019 .00975 .00934 .00896 .0086010............................................................ .01099 .01052 .01008 .00967 .0093011............................................................ .01191 .01142 .01095 .01052 .0101212............................................................ .01295 .01243 .01194 .01148 .0110613............................................................ .01406 .01351 .01299 .01251 .0120614............................................................ .01518 .01459 .01405 .01354 .0130615............................................................ .01625 .01563 .01506 .01452 .0140216............................................................ .01724 .01659 .01599 .01542 .0148917............................................................ .01815 .01747 .01683 .01624 .0156818............................................................ .01901 .01829 .01761 .01699 .0164019............................................................ .01984 .01908 .01837 .01771 .0170920............................................................ .02070 .01990 .01915 .01846 .0178021............................................................ .02160 .02075 .01996 .01923 .0185422............................................................ .02253 .02164 .02080 .02003 .0193023............................................................ .02352 .02258 .02170 .02088 .0201024............................................................ .02462 .02362 .02269 .02182 .0210025............................................................ .02586 .02481 .02382 .02289 .0220326............................................................ .02729 .02617 .02512 .02414 .0232227............................................................ .02891 .02772 .02662 .02558 .0246028............................................................ .03074 .02949 .02832 .02722 .0261829............................................................ .03276 .03143 .03019 .02902 .0279230............................................................ .03497 .03357 .03225 .03102 .0298531............................................................ .03735 .03587 .03448 .03317 .0319332............................................................ .03993 .03837 .03690 .03551 .0342033............................................................ .04273 .04108 .03952 .03806 .0366734............................................................ .04572 .04399 .04234 .04079 .0393335............................................................ .04896 .04713 .04539 .04376 .0422136............................................................ .05243 .05049 .04867 .04694 .0453037............................................................ .05613 .05410 .05217 .05035 .0486238............................................................ .06007 .05793 .05591 .05399 .0521739............................................................ .06425 .06200 .05987 .05785 .0559340............................................................ .06869 .06633 .06409 .06197 .0599541............................................................ .07339 .07092 .06857 .06634 .0642142............................................................ .07840 .07581 .07335 .07101 .0687843............................................................ .08370 .08099 .07841 .07595 .0736144............................................................ .08930 .08646 .08377 .08119 .0787445............................................................ .09517 .09222 .08940 .08670 .0841346............................................................ .10136 .09828 .09533 .09252 .0898347............................................................ .10786 .10464 .10157 .09864 .0958248............................................................ .11470 .11136 .10816 .10510 .1021649............................................................ .12189 .11842 .11509 .11190 .1088450............................................................ .12946 .12585 .12239 .11907 .1158851............................................................ .13737 .13363 .13003 .12659 .1232752............................................................ .14565 .14177 .13805 .13447 .1310353............................................................ .15429 .15028 .14642 .14271 .1391454............................................................ .16327 .15912 .15513 .15129 .1475955............................................................ .17259 .16831 .16419 .16022 .1563956............................................................ .18225 .17784 .17358 .16948 .1655357............................................................ .19227 .18773 .18335 .17912 .1750358............................................................ .20265 .19798 .19347 .18911 .1849059............................................................ .21343 .20863 .20400 .19951 .1951860............................................................ .22460 .21968 .21492 .21032 .2058661............................................................ .23620 .23117 .22629 .22156 .2169862............................................................ .24824 .24309 .23810 .23325 .2285663............................................................ .26073 .25546 .25036 .24540 .2406064............................................................ .27364 .26827 .26306 .25800 .2530865............................................................ .28696 .28150 .27619 .27103 .2660166............................................................ .30070 .29515 .28974 .28449 .2793767............................................................ .31483 .30919 .30371 .29836 .2931668............................................................ .32936 .32365 .31808 .31266 .3073769............................................................ .34432 .33854 .33290 .32741 .3220470............................................................ .35972 .35389 .34820 .34264 .3372171............................................................ .37565 .36977 .36403 .35842 .3529472............................................................ .39210 .38619 .38042 .37477 .3692473............................................................ .40900 .40308 .39728 .39161 .3860574............................................................ .42618 .42025 .41444 .40876 .4031875............................................................ .44345 .43753 .43173 .42604 .4204676............................................................ .46073 .45483 .44904 .44336 .4377977............................................................ .47799 .47212 .46635 .46069 .4551378............................................................ .49524 .48941 .48368 .47805 .4725279............................................................ .51256 .50678 .50110 .49551 .4900180............................................................ .53001 .52429 .51867 .51313 .5076981............................................................ .54745 .54181 .53626 .53079 .5254182............................................................ .56476 .55921 .55374 .54835 .5430383............................................................ .58193 .57648 .57110 .56579 .5605684............................................................ .59907 .59373 .58845 .58325 .5781185............................................................ .61624 .61102 .60586 .60077 .5957486............................................................ .63300 .62791 .62289 .61791 .6130087............................................................ .64883 .64387 .63896 .63411 .6293288............................................................ .66363 .65880 .65402 .64929 .6446189............................................................ .67775 .67304 .66838 .66377 .6592190............................................................ .69160 .68703 .68250 .67802 .6735791............................................................ .70509 .70066 .69626 .69191 .6876092............................................................ .71775 .71345 .70919 .70496 .7007893............................................................ .72929 .72512 .72099 .71689 .7128294............................................................ .73964 .73559 .73157 .72758 .7236295............................................................ .74867 .74472 .74081 .73692 .7330696............................................................ .75625 .75239 .74856 .74476 .7409997............................................................ .76303 .75925 .75550 .75177 .7480798............................................................ .76892 .76521 .76152 .75786 .7542299............................................................ .77443 .77078 .76715 .76355 .75998100........................................................... .77990 .77631 .77275 .76921 .76569101........................................................... .78463 .78109 .77757 .77407 .77060102........................................................... .78971 .78622 .78275 .77930 .77587103........................................................... .79629 .79287 .78947 .78608 .78272104........................................................... .80244 .79907 .79572 .79239 .78907105........................................................... .81198 .80871 .80546 .88222 .79900106........................................................... .82792 .82485 .82180 .81876 .81572107........................................................... .85057 .84783 .84509 .84237 .83964108........................................................... .88740 .88526 .88312 .88098 .87885109........................................................... .94900 .94800 .94700 .94600 .94500----------------------------------------------------------------------------------------------------------------
Table E
Table E--Single Life, Unisex--Table Showing the Present Worth of the Remainder Interest in Property Transferred
to a Unitrust Having the Adjusted Payout Rate Shown--Applicable for Transfers After November 30, 1983, and
Before May 1, 1989----------------------------------------------------------------------------------------------------------------
(2) Adjusted payout rate
(1) Age -------------------------------------------------
11.2% 11.4% 11.6% 11.8% 12.0%----------------------------------------------------------------------------------------------------------------0............................................................. .02487 .02466 .02447 .02429 .024121............................................................. .00686 .00666 .00648 .00631 .006152............................................................. .00641 .00620 .00601 .00583 .005663............................................................. .00631 .00609 .00589 .00570 .005524............................................................. .00637 .00614 .00593 .00573 .005545............................................................. .00657 .00633 .00610 .00588 .005686............................................................. .00687 .00661 .00637 .00614 .005937............................................................. .00724 .00696 .00670 .00646 .006238............................................................. .00770 .00740 .00713 .00687 .006639............................................................. .00827 .00795 .00766 .00739 .0071310............................................................ .00894 .00861 .00830 .00800 .0077311............................................................ .00974 .00939 .00906 .00875 .0084612............................................................ .01066 .01029 .00993 .00961 .0092913............................................................ .01164 .01124 .01087 .01052 .0101914............................................................ .01262 .01220 .01181 .01144 .0110915............................................................ .01355 .01311 .01270 .01231 .0119416............................................................ .01440 .01394 .01350 .01309 .0127117............................................................ .01516 .01467 .01421 .01378 .01337
18............................................................ .01585 .01534 .01485 .01440 .0139719............................................................ .01651 .01597 .01546 .01498 .0145320............................................................ .01719 .01662 .01608 .01557 .0151021............................................................ .01789 .01728 .01672 .01618 .0156822............................................................ .01861 .01797 .01737 .01680 .0162723............................................................ .01938 .01870 .01806 .01746 .0168924............................................................ .02023 .01951 .01883 .01819 .0175925............................................................ .02121 .02045 .01973 .01905 .0184126............................................................ .02236 .02155 .02078 .02006 .0193827............................................................ .02368 .02282 .02200 .02124 .0205128............................................................ .02521 .02429 .02342 .02261 .0218329............................................................ .02689 .02591 .02499 .02412 .0233030............................................................ .02875 .02772 .02674 .02581 .0249431............................................................ .03076 .02966 .02863 .02764 .0267132............................................................ .03297 .03180 .03070 .02965 .0286633............................................................ .03536 .03412 .03295 .03184 .0307934............................................................ .03794 .03663 .03539 .03421 .0330935............................................................ .04074 .03935 .03803 .03678 .0355936............................................................ .04375 .04228 .04089 .03956 .0383037............................................................ .04699 .04543 .04395 .04255 .0412238............................................................ .05044 .04879 .04723 .04575 .0443339............................................................ .05411 .05238 .5073 .04916 .0476640............................................................ .05802 .05620 .05445 .05279 .0512141............................................................ .06219 .06026 .05843 .05668 .0555042............................................................ .06665 .06462 .06269 .06084 .0590843............................................................ .07138 .06924 .06721 .06526 .0634144............................................................ .07639 .07415 .07202 .06997 .0680145............................................................ .08168 .07933 .07708 .07493 .0728746............................................................ .08726 .08480 .08244 .08018 .0780247............................................................ .09313 .09056 .08809 .08572 .0834548............................................................ .09935 .09666 .09408 .09160 .0892249............................................................ .10591 .10309 .10039 .09780 .0953150............................................................ .11282 .10989 .10707 .10436 .1017651............................................................ .12009 .11703 .11409 .11127 .1085552............................................................ .12772 .12454 .12147 .11853 .1156953............................................................ .13571 .13340 .12922 .12615 .1231954............................................................ .14403 .14060 .13729 .13410 .1310255............................................................ .15270 .14914 .14571 .14240 .1392056............................................................ .16171 .15802 .15447 .15103 .1477157............................................................ .17109 .16728 .16360 .16004 .1566058............................................................ .18083 .17690 .17309 .16941 .1658559............................................................ .19098 .18692 .18299 .17919 .1755160............................................................ .20154 .19736 .19331 .18938 .1855861............................................................ .21254 .20824 .20407 .20003 .1961062............................................................ .22400 .21958 .21530 .21113 .2070963............................................................ .23593 .23139 .22699 .22272 .2185664............................................................ .24830 .24366 .23915 .23476 .2305065............................................................ .26113 .25638 .25176 .24727 .2429066............................................................ .27439 .26955 .26483 .26023 .2557667............................................................ .28808 .28314 .27833 .27364 .2690668............................................................ .30221 .29718 .29228 .28750 .2828369............................................................ .31681 .31170 .30672 .30185 .2971070............................................................ .33190 .32673 .32167 .31672 .3118971............................................................ .34758 .34234 .33721 .33220 .3273172............................................................ .36384 35855 .35337 .34831 .3433573............................................................ .38061 .37529 .37007 .36496 .3599674............................................................ .39772 .39237 .38713 .38199 .3769575............................................................ .41499 .40962 .40436 .39920 .3941376............................................................ .43232 .42695 .42168 .41650 .4114277............................................................ .44967 .44431 .43904 .43386 .4287878............................................................ .46708 .46173 .45647 .45130 .4462279............................................................ .48460 .47928 .47405 .46890 .4638380............................................................ .50232 .49705 .49185 .48673 .4816981............................................................ .52010 .51487 .50973 .50465 .4996582............................................................ .53779 .53263 .52754 .52252 .5175783............................................................ .55540 .55031 .54529 .54033 .5354484............................................................ .57304 .56804 .56309 .55822 .5534085............................................................ .59077 .58586 .58102 .57623 .5715086............................................................ .60815 .60335 .59860 .59392 .5892887............................................................ .62458 .61989 .61525 .61066 .6061388............................................................ .63998 .63540 .63086 .62638 .6219489............................................................ .65469 .65022 .64579 .64141 .6370790............................................................ .66918 .66482 .66050 .65623 .6519991............................................................ .68332 .67909 .67489 .67073 .6666192............................................................ .69662 .69251 .68843 .68439 .6803893............................................................ .70879 .70479 .70082 .69689 .6929994............................................................ .71970 .71581 .71195 .70812 .7043295............................................................ .72924 .72544 .72167 .71793 .7142296............................................................ .73724 .73353 .72984 .72618 .7225497............................................................ .74440 .74076 .73714 .73354 .7299898............................................................ .75061 .74703 .74347 .73994 .7364399............................................................ .75642 .75290 .74939 .74591 .74245100........................................................... .76219 .75872 .75527 .75184 .74844101........................................................... .76715 .76372 .76031 .75692 .75356102........................................................... .77246 .76908 .76571 .76236 .75904103........................................................... .77937 .77605 .77274 .76945 .76618104........................................................... .78577 .78249 .77923 .77598 .77275105........................................................... .79579 .79259 .78941 .78625 .78310106........................................................... .81270 .80969 .80670 .80371 .80073107........................................................... .83693 .83422 .83152 .82883 .82614108........................................................... .87672 .87459 .87246 .87034 .86822109........................................................... .94400 .94300 .94200 .94100 .94000----------------------------------------------------------------------------------------------------------------
Table E
Table E--Single Life, Unisex--Table Showing the Present Worth of the Remainder Interest in Property Transferred
to a Unitrust Having the Adjusted Payout Rate Shown--Applicable for Transfers After November 30, 1983, and
Before May 1, 1989----------------------------------------------------------------------------------------------------------------
(2) Adjusted payout rate
(1) Age -------------------------------------------------
12.2% 12.4% 12.6% 12.8% 13.0%----------------------------------------------------------------------------------------------------------------0............................................................. .02396 .02380 .02366 .02352 .023381............................................................. .00600 .00585 .00572 .00559 .005472............................................................. .00550 .00535 .00521 .00508 .004953............................................................. .00536 .00520 .00505 .00491 .004784............................................................. .00536 .00519 .00504 .00489 .004755............................................................. .00549 .00532 .00515 .00499 .004846............................................................. .00572 .00554 .00536 .00519 .005037............................................................. .00602 .00582 .00563 .00545 .005288............................................................. .00640 .00618 .00598 .00579 .005619............................................................. .00688 .00665 .00644 .00623 .0060410............................................................ .00747 .00723 .00699 .00678 .0065711............................................................ .00818 .00792 .00767 .00744 .0072212............................................................ .00900 .00873 .00846 .00822 .0079813............................................................ .00988 .00959 .00931 .00905 .0088014............................................................ .01077 .01046 .01017 .00989 .0096315............................................................ .01160 .01127 .01097 .01067 .0104016............................................................ .01234 .01200 .01167 .01137 .0110817............................................................ .01299 .01263 .01229 .01197 .0116618............................................................ .01357 .01319 .01283 .01249 .0121719............................................................ .01410 .01370 .01332 .01297 .0126320............................................................ .01465 .01422 .01382 .01345 .0130921............................................................ .01520 .01475 .01433 .01393 .0135522............................................................ .01576 .01529 .01484 .01442 .0140223............................................................ .01636 .01586 .01538 .01493 .0145024............................................................ .01703 .01649 .01599 .01551 .0150525............................................................ .01781 .01724 .01670 .01619 .0157126............................................................ .01874 .01813 .01756 .01701 .01650
27............................................................ .01983 .01918 .01857 .01799 .0174428............................................................ .02111 .02042 .01976 .01915 .0185629............................................................ .02253 .02179 .02110 .02044 .0198130............................................................ .02411 .02333 .02259 .02188 .0212131............................................................ .02583 .02500 .02421 .02345 .0227432............................................................ .02772 .02683 .02599 .02519 .0244333............................................................ .02979 .02885 .02795 .02709 .0262834............................................................ .03203 .03102 .03006 .02915 .0282935............................................................ .03447 .03340 .03238 .03141 .0304836............................................................ .03710 .03597 .03488 .03385 .0328637............................................................ .03995 .03874 .03758 .03649 .0354438............................................................ .04299 .04170 .04048 .03931 .0382039............................................................ .04623 .04487 .04358 .04234 .0411540............................................................ .04970 .04826 .04689 .04558 .0443241............................................................ .05341 .05189 .05043 .04904 .0477142............................................................ .05739 .05578 .05424 .05277 .0513643............................................................ .06163 .05993 .05830 .05674 .0552544............................................................ .06614 .06435 .06263 .06099 .0594145............................................................ .07090 .06901 .06720 .06547 .0638046............................................................ .07595 .07396 .07206 .07023 .0684747............................................................ .08128 .07919 .07718 .07525 .0734048............................................................ .08693 .08474 .08263 .08061 .0786649............................................................ .09291 .09061 .08840 .08627 .0842350............................................................ .09925 .09684 .09452 .09229 .0901451............................................................ .10593 .10341 .10098 .09864 .0963852............................................................ .11296 .11032 .10778 .10534 .1029753............................................................ .12034 .11759 .11494 .11238 .1099154............................................................ .12805 .12519 .12243 .11976 .1171855............................................................ .13611 .13313 .13025 .12747 .1247856............................................................ .14451 .14141 .13841 .13551 .1327157............................................................ .15327 .15005 .14694 .14393 .1410158............................................................ .16240 .15906 .15583 .15270 .1496759............................................................ .17194 .16848 .16513 .16189 .1587460............................................................ .18189 .17831 .17485 .17148 .1682261............................................................ .19230 .18860 .18502 .18154 .1781662............................................................ .20317 .19936 .19566 .19207 .1885763............................................................ .21453 .21060 .20679 .20308 .1994764............................................................ .22635 .22231 .21839 .21457 .2108565............................................................ .23864 .23450 .23046 .22653 .2227166............................................................ .25140 .24715 .24301 .23898 .2350567............................................................ .26461 .26026 .25602 .25188 .2478568............................................................ .27828 .27384 .26950 .26527 .2611469............................................................ .29246 .28793 .28350 .27918 .2749670............................................................ .30718 .30256 .29805 .29364 .2893371............................................................ .32251 .31783 .31324 .30876 .3043772............................................................ .33850 .33375 .32910 .32455 .3200973............................................................ .35506 .35026 .34555 .34094 .3364274............................................................ .37201 .36716 .36241 .35776 .3531975............................................................ .38916 .38429 .37950 .37481 .3702076............................................................ .40644 .40154 .39673 .39200 .3873777............................................................ .42378 .41887 .41404 .40930 .4046478............................................................ .44123 .43631 .43148 .42673 .4220579............................................................ .45885 .45394 .44911 .44436 .4396980............................................................ .47673 .47184 .46703 .46229 .4576381............................................................ .49473 .48987 .48509 .48037 .4757382............................................................ .51269 .50787 .50313 .49845 .4938383............................................................ .53062 .52586 .52116 .51653 .5119584............................................................ .54864 .54395 .53931 .53473 .5302185............................................................ .56683 .56221 .55765 .55314 .5486986............................................................ .58470 .58017 .57570 .57127 .5668987............................................................ .60164 .59720 .59281 .58847 .5841788............................................................ .61754 .61320 .60889 .60464 .6004289............................................................ .63277 .62851 .62430 .62013 .6160090............................................................ .64780 .64364 .63953 .63545 .6314191............................................................ .66252 .65848 .65446 .65049 .6465592............................................................ .67640 .67246 .66856 .66468 .6608493............................................................ .68912 .68528 .68148 .67770 .6739694............................................................ .70055 .69680 .69309 .68941 .6857695............................................................ .71054 .70689 .70326 .69966 .6960996............................................................ .71893 .71535 .71180 .70827 .7047697............................................................ .72643 .72292 .71943 .71596 .7125298............................................................ .73294 .72948 .72604 .72263 .7192499............................................................ .73902 .73561 .73222 .72886 .72551100........................................................... .74506 .74170 .73836 .73504 .73174101........................................................... .75021 .74689 .74359 .74030 .73704102........................................................... .75573 .75244 .74918 .74593 .74270103........................................................... .76293 .75970 .75649 .75329 .75011104........................................................... .76954 .76634 .76316 .76000 .75685105........................................................... .77996 .77684 .77373 .77064 .76756106........................................................... .79777 .79481 .79187 .78894 .78602107........................................................... .82346 .82078 .81812 .81546 .81281108........................................................... .86610 .86398 .86187 .85976 .85765109........................................................... .93900 .93800 .93700 .93600 .93500----------------------------------------------------------------------------------------------------------------
Table E
Table E--Single Life, Unisex--Table Showing the Present Worth of the Remainder Interest in Property Transferred
to a Unitrust Having the Adjusted Payout Rate Shown--Applicable for Transfers After November 30, 1983, and
Before May 1, 1989----------------------------------------------------------------------------------------------------------------
(2) Adjusted payout rate
(1) Age -------------------------------------------------
13.2% 13.4% 13.6% 13.8% 14.0%----------------------------------------------------------------------------------------------------------------0............................................................. .02325 .02313 .02301 .02290 .022791............................................................. .00536 .00525 .00514 .00505 .004952............................................................. .00484 .00472 .00462 .00451 .004423............................................................. .00465 .00453 .00442 .00431 .004214............................................................. .00461 .00449 .00437 .00426 .004155............................................................. .00470 .00457 .00444 .00432 .004216............................................................. .00488 .00474 .00460 .00447 .004357............................................................. .00512 .00496 .00482 .00468 .004558............................................................. .00543 .00527 .00512 .00497 .004839............................................................. .00585 .00568 .00551 .00536 .0052110............................................................ .00637 .00619 .00601 .00584 .0056811............................................................ .00701 .00681 .00662 .00644 .0062712............................................................ .00776 .00755 .00735 .00716 .0069713............................................................ .00857 .00734 .00813 .00793 .0077314............................................................ .00938 .00914 .00892 .00870 .0085015............................................................ .01014 .00989 .00965 .00942 .0092116............................................................ .01080 .01054 .01029 .01005 .0098317............................................................ .01137 .01109 .01083 .01058 .0103518............................................................ .01186 .01157 .01130 .01103 .0107819............................................................ .01230 .01300 .01171 .01143 .0111720............................................................ .01275 .01243 .01212 .01183 .0115521............................................................ .01319 .01285 .01253 .01222 .0119322............................................................ .01364 .01328 .01293 .01261 .0123023............................................................ .01410 .01372 .01336 .01301 .0126824............................................................ .01463 .01422 .01383 .01347 .0131225............................................................ .01525 .01482 .01441 .01401 .0136426............................................................ .01601 .01555 .01511 .01469 .0143027............................................................ .01692 .01643 .01596 .01551 .0150928............................................................ .01800 .01748 .01697 .01650 .0160429............................................................ .01922 .01865 .01812 .01760 .0171230............................................................ .02058 .01998 .01940 .01886 .0183331............................................................ .02206 .02142 .02080 .02022 .0196632............................................................ .02370 .02301 .02236 .02173 .0211333............................................................ .02550 .02477 .02407 .02340 .0227634............................................................ .02746 .02667 .02592 .02521 .0245235............................................................ .02960 .02876 .02796 .02719 .02646
36............................................................ .03193 .03103 .03017 .02936 .0285837............................................................ .03444 .03348 .03257 .03170 .0308738............................................................ .03714 .03612 .03515 .03422 .0333339............................................................ .04002 .03894 .03791 .03692 .0359740............................................................ .04312 .04197 .04087 .03891 .0388041............................................................ .04643 .04521 .04404 .04292 .0418542............................................................ .05001 .04871 .04747 .04628 .0451443............................................................ .05382 .05245 .05113 .04987 .0486544............................................................ .05789 .05644 .05505 .05371 .0524245............................................................ .06220 .06067 .05919 .05777 .0564146............................................................ .06678 .06516 .06360 .06210 .0606547............................................................ .07162 .06991 .06826 .06668 .0651548............................................................ .07678 .07498 .07324 .07157 .0699649............................................................ .08225 .08035 .07852 .07676 .0750650............................................................ .08807 .08607 .08415 .08229 .0805051............................................................ .09421 .09211 .09009 .08814 .0862552............................................................ .10070 .09850 .09637 .09432 .0923453............................................................ .10753 .10523 .10300 .10085 .0987754............................................................ .11468 .11227 .10994 .10769 .1055155............................................................ .12218 .11966 .11722 .11487 .1125856............................................................ .12999 .12737 .12483 .12236 .1199857............................................................ .13818 .13545 .13279 .13022 .1277358............................................................ .14673 .14388 .14112 .13844 .1358459............................................................ .15568 .15272 .14985 .14706 .1443560............................................................ .16505 .16198 .15899 .15609 .1532761............................................................ .17488 .17169 .16859 .16558 .1626562............................................................ .18518 .18187 .17866 .17554 .1725163............................................................ .19596 .19255 .18923 .18600 .1828564............................................................ .20723 .20371 .20028 .19694 .1936865............................................................ .21898 .21535 .21181 .20836 .2050066............................................................ .23121 .22748 .22383 .22028 .2168167............................................................ .24392 .24008 .23633 .23267 .2291068............................................................ .25711 .25317 .24932 .24556 .2418969............................................................ .27083 .26680 .26285 .25900 .2552370............................................................ .28512 .28100 .27697 .27302 .2691671............................................................ .30007 .29587 .29176 .28773 .2837872............................................................ .31572 .31145 .30726 .30315 .2991373............................................................ .33199 .32765 .32340 .31923 .3151474............................................................ .34871 .34431 .34000 .33577 .3316275............................................................ .36568 .36124 .35688 .35260 .3484076............................................................ .38281 .37833 .37393 .36961 .3653777............................................................ .40006 .39555 .39113 .38677 .3824978............................................................ .41745 .41293 .40848 .40410 .3998079............................................................ .43508 .43055 .42609 .42170 .4173780............................................................ .45303 .44850 .44404 .43964 .4353181............................................................ .47115 .46663 .46218 .45779 .4534782............................................................ .48928 .48479 .48036 .47599 .4716883............................................................ .50744 .50298 .49858 .49424 .4899584............................................................ .52575 .52134 .51698 .51268 .5084385............................................................ .54429 .53994 .53564 .53139 .5272086............................................................ .56257 .55829 .55406 .54988 .5457487............................................................ .57993 .57572 .57156 .56745 .5633888............................................................ .59625 .59212 .58804 .58399 .5799989............................................................ .61191 .60786 .60384 .59987 .5959490............................................................ .62741 .62344 .61952 .61562 .6117791............................................................ .64264 .63877 .63493 .63113 .6273692............................................................ .65703 .65326 .64951 .64580 .6421293............................................................ .67024 .66656 .66291 .65928 .6556894............................................................ .68213 .67854 .67497 .67142 .6679195............................................................ .69255 .68903 .68554 .68207 .6786396............................................................ .70128 .69783 .69440 .69100 .6876297............................................................ .70910 .70570 .70233 .69899 .6956698............................................................ .71587 .71252 .70920 .70590 .7026399............................................................ .72219 .71889 .71562 .71236 .70913100........................................................... .72847 .72522 .72189 .71877 .71558101........................................................... .73380 .73058 .72738 .72420 .72104102........................................................... .73949 .73630 .73313 .72998 .72685103........................................................... .74695 .74381 .74068 .73758 .73449104........................................................... .75372 .75060 .74751 .74442 .74136105........................................................... .76449 .76144 .75840 .75538 .75237106........................................................... .78311 .78021 .77732 .77444 .77157107........................................................... .81016 .80752 .80489 .80227 .79965108........................................................... .85554 .85344 .85134 .84924 .84715109........................................................... .93400 .93300 .93200 .93100 .93000----------------------------------------------------------------------------------------------------------------
Table F(1)
Table F(1)--10 Percent--Table Showing Factors for Computations of the
Adjusted Payout Rate for Certain Valuations and Payout Sequences--Applicable for Transfers After November 30, 1983, and Before May 1, 1989------------------------------------------------------------------------
(1) Number of months (2) Factors for payout at the end of eachby which the valuation -------------------------------------------------
date precedes the
first payout----------------------- Annual Semiannual Quarterly Monthly
But less period period period period
At least than------------------------------------------------------------------------
1 .......... .976731 .965232 .957616
1 2 .992089 .969004 .957596 .950041
2 3 .984240 .961338 .950021
3 4 .976454 .953733 .942505
4 5 .968729 .946188
5 6 .961066 .938703
6 7 .953463 .931277
7 8 .945920
8 9 .938436
9 10 .931012
10 11 .923647
11 12 .916340
12 .......... .909091------------------------------------------------------------------------
(e) Valuation of charitable remainder unitrusts having certain payout sequences for transfers for which the valuation date is after April 30, 1989, and before May 1, 1999--(1) In general. Except as otherwise provided in paragraph (e)(2) of this section, in the case of transfers for which the valuation date is after April 30, 1989, and before May 1, 1999, the present value of a remainder interest is determined under paragraphs (e)(3) through (e)(6) of this section, provided that the amount of the payout as of any payout date during any taxable year of the trust is not larger than the amount that the trust could distribute on such date under Sec. 1.664-3(a)(1)(v) if the taxable year of the trust were to end on such date. See, however, Sec. 1.7520-3(b) (relating to exceptions to the use of the prescribed tables under certain circumstances).
(1) In general. Except as otherwise provided in paragraph (e)(2) of this section, in the case of transfers for which the valuation date is after April 30, 1989, and before May 1, 1999, the present value of a remainder interest is determined under paragraphs (e)(3) through (e)(6) of this section, provided that the amount of the payout as of any payout date during any taxable year of the trust is not larger than the amount that the trust could distribute on such date under Sec. 1.664-3(a)(1)(v) if the taxable year of the trust were to end on such date. See, however, Sec. 1.7520-3(b) (relating to exceptions to the use of the prescribed tables under certain circumstances).
(2) Transitional rules for valuation of charitable remainder unitrusts. (i) If the valuation date of a transfer to a charitable remainder unitrust is after April 30, 1989, and before June 10, 1994, a transferor can rely upon Notice 89-24, 1989-1 C.B. 660, or Notice 89-60, 1989-1 C.B. 700, in valuing the transferred interest. (See Sec. 601.601(d)(2)(ii)(b) of this chapter.)
(i) If the valuation date of a transfer to a charitable remainder unitrust is after April 30, 1989, and before June 10, 1994, a transferor can rely upon Notice 89-24, 1989-1 C.B. 660, or Notice 89-60, 1989-1 C.B. 700, in valuing the transferred interest. (See Sec. 601.601(d)(2)(ii)(b) of this chapter.)
(ii) For purposes of sections 2055, 2106, or 2624, if on May 1, 1989, the decedent was mentally incompetent so that the disposition of the property could not be changed, and the decedent died after April 30, 1989, without having regained competency to dispose of the decedent's property, or the decedent died within 90 days of the date that the decedent first regained competency after April 30, 1989, the present value of a remainder interest determined under this section is determined as if the valuation date with respect to the decedent's gross estate is either before May 1, 1989, or after April 30, 1989, at the option of the decedent's executor.
(3) Adjusted payout rate. For transfers for which the valuation date is after April 30, 1989, and before May 1, 1999, the adjusted payout rate is determined by using the appropriate Table F, contained in Sec. 1.664-4(e)(6), for the section 7520 interest rate applicable to the transfer. If the interest rate is between 4.2 and 14 percent, see Sec. 1.664-4(e)(6). If the interest rate is below 4.2 percent or greater than 14 percent, see Sec. 1.664-4(b). See Sec. 1.664-4(e) for rules applicable in determining the adjusted payout rate.
(4) Period is a term of years. If the period described in Sec. 1.664-3(a)(5) is a term of years, the factor that is used in determining the present value of the remainder interest for transfers for which the valuation date is after April 30, 1989, and before May 1, 1999, is the factor under the appropriate adjusted payout rate in Table D in Sec. 1.664-4(e)(6) corresponding to the number of years in the term. If the adjusted payout rate is an amount that is between adjusted payout rates for which factors are provided in Table D, a linear interpolation must be made. The present value of the remainder interest is determined by multiplying the net fair market value (as of the appropriate valuation date) of the property placed in trust by the factor determined under this paragraph. Generally, for purposes of this section, the valuation date is, in the case of an inter vivos transfer, the date on which the property is transferred to the trust by the donor, and, in the case of a testamentary transfer under sections 2055, 2106, or 2624, the valuation date is the date of death. See Sec. 1.664-4(e)(4) for additional rules regarding the valuation date. See Sec. 1.664-4(e)(4) for an example that illustrates the application of this paragraph (e)(4).
(5) Period is the life of one individual. If the period described in Sec. 1.664-3(a)(5) is the life of one individual, the factor that is used in determining the present value of the remainder interest for transfers for which the valuation date is after April 30, 1989, and before May 1, 1999, is the factor in Table U(1) in paragraph (e)(6) of this section under the appropriate adjusted payout. For purposes of the computations described in this paragraph (e)(5), the age of an individual is the age of that individual at the individual's nearest birthday. If the adjusted payout rate is an amount that is between adjusted payout rates for which factors are provided in the appropriate table, a linear interpolation must be made. The rules provided in Sec. 1.664-4(e)(5) apply for determining the present value of the remainder interest. See Sec. 1.664-4(e)(5) for an example illustrating the application of this paragraph (e)(5)(using current actuarial tables).
(6) Actuarial tables for transfers for which the valuation date is after April 30, 1989, and before May 1, 1999. For transfers for which the valuation date is after April 30, 1989, and before May 1, 1999, the present value of a charitable remainder unitrust interest that is dependent on a term of years or the termination of a life interest is determined by using the section 7520 rate and Table D, Tables F(4.2) through F(14.0) in Sec. 1.664-4(e)(6) and Table U(1) of this paragraph (e)(6), as applicable. See, however, Sec. 1.7520-3(b) (relating to exceptions to the use of prescribed tables under certain circumstances). Many actuarial factors not contained in the following tables are contained in Internal Revenue Service Publication 1458, ``Actuarial Values, Beta Volume,'' (8-89). Publication 1458 is no longer available for purchase from the Superintendent of Documents, United States Government Printing Office, Washington, DC 20402. However, pertinent factors in this publication may be obtained by a written request to: CC:DOM:CORP:R (IRS Publication 1458), room 5226, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044.
Table U(1)--Unitrust Single Life Remainder Factors--Based on Life Table 80CNSMT
[Applicable for Transfers After April 30, 1989, and Before May 1, 1999]--------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted payout rate
Age ---------------------------------------------------------------------------------------------------
4.2% 4.4% 4.6% 4.8% 5.0% 5.2% 5.4% 5.6% 5.8% 6.0%--------------------------------------------------------------------------------------------------------------------------------------------------------0................................................... .06797 .06181 .05645 .05177 .04768 .04410 .04096 .03820 .03578 .033641................................................... .05881 .05243 .04686 .04199 .03773 .03400 .03072 .02784 .02531 .023082................................................... .06049 .05394 .04821 .04319 .03880 .03494 .03155 .02856 .02593 .023613................................................... .06252 .05579 .04990 .04473 .04020 .03621 .03270 .02961 .02688 .024464................................................... .06479 .05788 .05182 .04650 .04183 .03771 .03408 .03087 .02804 .025535................................................... .06724 .06016 .05393 .04845 .04363 .03937 .03562 .03230 .02936 .026756................................................... .06984 .06257 .05618 .05054 .04557 .04117 .03729 .03385 .03080 .028097................................................... .07259 .06513 .05856 .05276 .04764 .04310 .03909 .03552 .03236 .029548................................................... .07548 .06784 .06109 .05513 .04985 .04517 .04102 .03733 .03405 .031139................................................... .07854 .07071 .06378 .05765 .05221 .04738 .04310 .03928 .03588 .0328510.................................................. .08176 .07374 .06663 .06033 .05473 .04976 .04533 .04138 .03786 .0347111.................................................. .08517 .07695 .06966 .06319 .05743 .05230 .04772 .04364 .04000 .0367312.................................................. .08872 .08031 .07284 .06619 .06026 .05498 .05026 .04604 .04227 .0388913.................................................. .09238 .08378 .07612 .06929 .06320 .05776 .05289 .04853 .04463 .0411314.................................................. .09608 .08728 .07943 .07243 .06616 .06056 .05554 .05104 .04701 .0433815.................................................. .09981 .09081 .08276 .07557 .06914 .06337 .05820 .05356 .04938 .0456316.................................................. .10356 .09435 .08612 .07874 .07213 .06619 .06086 .05607 .05176 .0478717.................................................. .10733 .09792 .08949 .08192 .07513 .06902 .06353 .05858 .05413 .0501018.................................................. .11117 .10155 .09291 .08515 .07817 .07189 .06623 .06113 .05652 .0523619.................................................. .11509 .10526 .09642 .08847 .08130 .07484 .06901 .06375 .05899 .0546920.................................................. .11913 .10908 .10003 .09188 .08452 .07788 .07188 .06645 .06154 .0570821.................................................. .12326 .11300 .10375 .09539 .08784 .08101 .07483 .06923 .06416 .0595522.................................................. .12753 .11705 .10758 .09902 .09127 .08426 .07789 .07212 .06688 .0621223.................................................. .13195 .12125 .11156 .10279 .09484 .08763 .08109 .07514 .06973 .0648124.................................................. .13655 .12563 .11573 .10675 .09860 .09119 .08446 .07833 .07274 .0676625.................................................. .14136 .13022 .12010 .11091 .10255 .09495 .08802 .08171 .07595 .0706926.................................................. .14640 .13504 .12471 .11530 .10674 .09893 .09181 .08531 .07937 .0739427.................................................. .15169 .14011 .12956 .11994 .11117 .10316 .09584 .08915 .08302 .0774228.................................................. .15721 .14542 .13465 .12482 .11583 .10762 .10010 .09322 .08691 .0811229.................................................. .16299 .15097 .13999 .12994 .12075 .11233 .10461 .09753 .09104 .0850730.................................................. .16901 .15678 .14559 .13533 .12592 .11729 .10937 .10210 .09541 .0892631.................................................. .17531 .16287 .15146 .14099 .13137 .12254 .11441 .10694 .10006 .0937232.................................................. .18186 .16921 .15759 .14691 .13709 .12804 .11972 .11205 .10497 .0984433.................................................. .18869 .17584 .16401 .15312 .14309 .13384 .12531 .11744 .11017 .1034534.................................................. .19578 .18273 .17070 .15961 .14937 .13992 .13119 .12312 .11565 .1087435.................................................. .20315 .18990 .17767 .16637 .15593 .14628 .13735 .12908 .12142 .1143136.................................................. .21076 .19732 .18490 .17340 .16276 .15291 .14377 .13531 .12745 .1201637.................................................. .21863 .20501 .19239 .18071 .16987 .15982 .15049 .14182 .13377 .1262838.................................................. .22676 .21296 .20016 .18828 .17725 .16701 .15748 .14862 .14037 .1326939.................................................. .23515 .22118 .20820 .19614 .18492 .17448 .16476 .15571 .14727 .1394040.................................................. .24379 .22967 .21652 .20428 .19288 .18225 .17234 .16310 .15447 .1464141.................................................. .25270 .23842 .22511 .21270 .20112 .19031 .18021 .17078 .16197 .1537242.................................................. .26184 .24742 .23395 .22137 .20962 .19864 .18836 .17875 .16975 .1613243.................................................. .27123 .25666 .24305 .23031 .21840 .20724 .19679 .18700 .17782 .1692144.................................................. .28085 .26616 .25241 .23952 .22745 .21613 .20551 .19554 .18618 .17739
45.................................................. .29072 .27591 .26203 .24901 .23678 .22530 .21452 .20438 .19485 .1858946.................................................. .30082 .28591 .27191 .25875 .24639 .23476 .22381 .21352 .20382 .1946847.................................................. .31116 .29616 .28204 .26877 .25626 .24449 .23340 .22295 .21309 .2037948.................................................. .32171 .30663 .29241 .27902 .26640 .25449 .24326 .23265 .22264 .2131849.................................................. .33245 .31730 .30300 .28950 .27676 .26473 .25336 .24262 .23246 .2228550.................................................. .34338 .32816 .31379 .30020 .28735 .27521 .26371 .25283 .24253 .2327751.................................................. .35449 .33923 .32479 .31112 .29818 .28593 .27431 .26331 .25287 .2429752.................................................. .36582 .35053 .33603 .32230 .30927 .29692 .28520 .27408 .26352 .2534953.................................................. .37736 .36205 .34751 .33372 .32063 .30819 .29637 .28514 .27446 .2643154.................................................. .38909 .37376 .35921 .34537 .33221 .31970 .30780 .29647 .28569 .2754255.................................................. .40099 .38568 .37111 .35724 .34404 .33146 .31949 .30807 .29719 .2868156.................................................. .41308 .39779 .38322 .36934 .35610 .34348 .33143 .31994 .30898 .2985157.................................................. .42536 .41011 .39555 .38167 .36841 .35575 .34366 .33210 .32106 .3105158.................................................. .43781 .42262 .40810 .39422 .38096 .36828 .35615 .34454 .33344 .3228159.................................................. .45043 .43530 .42083 .40698 .39373 .38104 .36888 .35724 .34609 .3354060.................................................. .46318 .44813 .43372 .41992 .40668 .39400 .38183 .37017 .35898 .3482461.................................................. .47602 .46107 .44674 .43299 .41979 .40713 .39497 .38329 .37207 .3612962.................................................. .48893 .47410 .45986 .44617 .43303 .42039 .40825 .39657 .38534 .3745463.................................................. .50190 .48720 .47306 .45946 .44638 .43379 .42168 .41001 .39878 .3879664.................................................. .51494 .50038 .48636 .47286 .45986 .44733 .43526 .42362 .41240 .4015865.................................................. .52808 .51368 .49980 .48641 .47350 .46104 .44903 .43743 .42624 .4154466.................................................. .54134 .52711 .51338 .50013 .48733 .47496 .46302 .45148 .44033 .4295667.................................................. .55471 .54068 .52712 .51401 .50134 .48908 .47723 .46577 .45467 .4439468.................................................. .56820 .55437 .54100 .52805 .51552 .50339 .49165 .48027 .46925 .4585869.................................................. .58172 .56812 .55495 .54219 .52982 .51783 .50620 .49494 .48401 .4734170.................................................. .59526 .58190 .56894 .55637 .54417 .53234 .52086 .50971 .49889 .4883871.................................................. .60874 .59564 .58291 .57055 .55854 .54687 .53554 .52453 .51382 .5034272.................................................. .62218 .60934 .59685 .58471 .57291 .56143 .55026 .53939 .52882 .5185473.................................................. .63557 .62301 .61078 .59887 .58728 .57600 .56501 .55431 .54389 .5337374.................................................. .64896 .63669 .62472 .61307 .60171 .59064 .57985 .56932 .55906 .5490675.................................................. .66237 .65040 .63872 .62733 .61622 .60538 .59480 .58447 .57439 .5645576.................................................. .67581 .66416 .65279 .64168 .63083 .62023 .60988 .59977 .58989 .5802377.................................................. .68925 .67793 .66688 .65606 .64550 .63516 .62506 .61517 .60551 .5960578.................................................. .70263 .69166 .68093 .67044 .66016 .65010 .64026 .63062 .62119 .6119579.................................................. .71585 .70525 .69486 .68468 .67471 .66495 .65538 .64600 .63681 .6278080.................................................. .72885 .71860 .70856 .69872 .68906 .67959 .67031 .66120 .65227 .6435081.................................................. .74150 .73162 .72193 .71242 .70308 .69392 .68492 .67609 .66742 .6589082.................................................. .75376 .74425 .73490 .72572 .71671 .70785 .69915 .69059 .68219 .6739383.................................................. .76559 .75643 .74744 .73859 .72989 .72134 .71293 .70466 .69652 .6885284.................................................. .77700 .76821 .75955 .75104 .74266 .73441 .72629 .71831 .71044 .7027085.................................................. .78805 .77961 .77130 .76311 .75505 .74711 .73929 .73158 .72399 .7165286.................................................. .79866 .79056 .78258 .77472 .76697 .75933 .75180 .74438 .73707 .7298587.................................................. .80870 .80094 .79329 .78574 .77829 .77095 .76370 .75656 .74951 .7425588.................................................. .81825 .81081 .80348 .79623 .78908 .78202 .77506 .76818 .76139 .7546989.................................................. .82746 .82035 .81332 .80638 .79952 .79275 .78606 .77945 .77292 .7664790.................................................. .83643 .82963 .82291 .81627 .80971 .80322 .79681 .79047 .78420 .7780191.................................................. .84503 .83854 .83212 .82578 .81950 .81330 .80716 .80109 .79509 .7891592.................................................. .85308 .84689 .84076 .83470 .82870 .82276 .81689 .81107 .80532 .7996393.................................................. .86052 .85460 .84875 .84295 .83721 .83152 .82590 .82033 .81481 .8093594.................................................. .86729 .86163 .85602 .85046 .84496 .83951 .83412 .82877 .82348 .8182395.................................................. .87338 .86795 .86257 .85723 .85195 .84672 .84153 .83639 .83129 .8262496.................................................. .87877 .87354 .86836 .86323 .85814 .85309 .84809 .84313 .83822 .8333497.................................................. .88365 .87861 .87362 .86867 .86375 .85888 .85405 .84926 .84450 .8397998.................................................. .88805 .88318 .87835 .87356 .86880 .86409 .85941 .85477 .85016 .8455999.................................................. .89210 .88739 .88271 .87807 .87347 .86890 .86436 .85986 .85539 .85095100................................................. .89588 .89131 .88678 .88227 .87780 .87337 .86896 .86459 .86024 .85593101................................................. .89949 .89506 .89066 .88629 .88195 .87764 .87336 .86911 .86488 .86069102................................................. .90325 .89897 .89471 .89047 .88627 .88209 .87794 .87381 .86971 .86564103................................................. .90724 .90311 .89900 .89491 .89085 .88681 .88279 .87880 .87484 .87089104................................................. .91167 .90770 .90376 .89983 .89593 .89205 .88819 .88435 .88053 .87673105................................................. .91708 .91333 .90959 .90587 .90217 .89848 .89481 .89116 .88752 .88391106................................................. .92470 .92126 .91782 .91440 .91100 .90760 .90422 .90085 .89749 .89414107................................................. .93545 .93246 .92948 .92650 .92353 .92057 .91762 .91467 .91173 .90880108................................................. .95239 .95016 .94792 .94569 .94346 .94123 .93900 .93678 .93456 .93234109................................................. .97900 .97800 .97700 .97600 .97500 .97400 .97300 .97200 .97100 .97000--------------------------------------------------------------------------------------------------------------------------------------------------------
Table U(1)--Based on Life Table 80CNSMT Unitrust Single Life Remainder Factors
[Applicable After April 30, 1989]--------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted payout rate
Age ---------------------------------------------------------------------------------------------------
6.2% 6.4% 6.6% 6.8% 7.0% 7.2% 7.4% 7.6% 7.8% 8.0%--------------------------------------------------------------------------------------------------------------------------------------------------------0................................................... .03176 .03009 .02861 .02730 .02613 .02509 .02416 .02333 .02258 .021911................................................... .02110 .01936 .01781 .01644 .01522 .01413 .01316 .01229 .01150 .010802................................................... .02156 .01974 .01812 .01669 .01541 .01427 .01325 .01234 .01152 .010783................................................... .02233 .02043 .01875 .01725 .01591 .01471 .01364 .01268 .01182 .011054................................................... .02330 .02132 .01956 .01800 .01660 .01535 .01422 .01322 .01231 .011495................................................... .02443 .02237 .02054 .01890 .01743 .01612 .01494 .01389 .01293 .012086................................................... .02568 .02353 .02162 .01990 .01837 .01700 .01576 .01465 .01365 .012757................................................... .02704 .02480 .02280 .02102 .01941 .01798 .01668 .01552 .01446 .013518................................................... .02852 .02619 .02411 .02224 .02057 .01906 .01770 .01648 .01537 .014379................................................... .03014 .02772 .02554 .02360 .02184 .02027 .01885 .01756 .01640 .0153510.................................................. .03190 .02938 .02711 .02508 .02325 .02160 .02012 .01877 .01755 .0164511.................................................. .03381 .03119 .02883 .02672 .02481 .02308 .02153 .02012 .01884 .0176812.................................................. .03585 .03313 .03068 .02847 .02648 .02468 .02305 .02157 .02023 .0190213.................................................. .03798 .03515 .03260 .03030 .02822 .02635 .02464 .02310 .02170 .0204214.................................................. .04012 .03718 .03453 .03213 .02997 .02801 .02623 .02462 .02315 .0218115.................................................. .04225 .03919 .03644 .03395 .03169 .02965 .02779 .02611 .02457 .0231716.................................................. .04436 .04120 .03833 .03574 .03339 .03126 .02932 .02756 .02595 .0244917.................................................. .04647 .04319 .04021 .03752 .03507 .03285 .03082 .02898 .02730 .0257718.................................................. .04860 .04519 .04210 .03930 .03675 .03443 .03232 .03040 .02864 .0270319.................................................. .05079 .04725 .04404 .04113 .03847 .03606 .03386 .03185 .03001 .0283320.................................................. .05304 .04938 .04604 .04301 .04025 .03773 .03543 .03333 .03141 .0296521.................................................. .05537 .05157 .04811 .04495 .04208 .03945 .03705 .03486 .03285 .0310122.................................................. .05779 .05385 .05025 .04698 .04398 .04125 .03874 .03645 .03435 .0324223.................................................. .06032 .05623 .05250 .04910 .04598 .04313 .04052 .03812 .03592 .0339024.................................................. .06302 .05878 .05491 .05136 .04812 .04515 .04242 .03992 .03762 .0355025.................................................. .06589 .06150 .05748 .05380 .05042 .04733 .04448 .04187 .03946 .0372526.................................................. .06897 .06442 .06025 .05643 .05292 .04969 .04673 .04400 .04148 .0391627.................................................. .07228 .06757 .06325 .05928 .05563 .05227 .04917 .04632 .04369 .0412628.................................................. .07582 .07094 .06646 .06234 .05854 .05504 .05182 .04884 .04609 .0435529.................................................. .07958 .07454 .06990 .06562 .06167 .05804 .05468 .05157 .04870 .0460430.................................................. .08360 .07838 .07357 .06913 .06504 .06125 .05775 .05452 .05152 .0487431.................................................. .08788 .08249 .07751 .07291 .06866 .06472 .06108 .05771 .05457 .0516732.................................................. .09242 .08685 .08170 .07694 .07252 .06844 .06465 .06113 .05786 .0548333.................................................. .09724 .09149 .08617 .08124 .07666 .07242 .06848 .06482 .06141 .0582434.................................................. .10234 .09641 .09091 .08581 .08107 .07667 .07257 .06876 .06521 .0619135.................................................. .10773 .10161 .09594 .09066 .08575 .08119 .07694 .07298 .06928 .0658336.................................................. .11338 .10708 .10122 .09577 .09070 .08597 .08156 .07744 .07360 .0700137.................................................. .11932 .11283 .10680 .10117 .09592 .09102 .08645 .08217 .07818 .0744438.................................................. .12554 .11887 .11265 .10685 .10142 .09636 .09162 .08719 .08304 .0791539.................................................. .13206 .12521 .11880 .11282 .10722 .10198 .09708 .09249 .08818 .0841440.................................................. .13888 .13184 .12526 .11909 .11332 .10791 .10284 .09808 .09361 .0894241.................................................. .14601 .13878 .13201 .12567 .11972 .11414 .10890 .10398 .09935 .0949942.................................................. .15342 .14601 .13906 .13254 .12641 .12066 .11525 .11016 .10537 .1008643.................................................. .16112 .15353 .14640 .13970 .13340 .12747 .12189 .11663 .11168 .1070144.................................................. .16913 .16136 .15406 .14718 .14070 .13460 .12885 .12342 .11830 .1134745.................................................. .17745 .16951 .16202 .15497 .14832 .14204 .13612 .13053 .12525 .1202546.................................................. .18608 .17796 .17030 .16308 .15625 .14981 .14372 .13796 .13251 .1273547.................................................. .19501 .18673 .17890 .17150 .16451 .15790 .15164 .14571 .14010 .1347848.................................................. .20425 .19579 .18780 .18024 .17308 .16630 .15987 .15378 .14800 .1425249.................................................. .21375 .20514 .19698 .18926 .18193 .17499 .16840 .16214 .15620 .1505650.................................................. .22352 .21476 .20644 .19856 .19107 .18396 .17721 .17080 .16470 .1589051.................................................. .23358 .22467 .21620 .20816 .20051 .19325 .18634 .17976 .17350 .1675552.................................................. .24396 .23490 .22628 .21809 .21030 .20288 .19581 .18908 .18267 .1765553.................................................. .25465 .24545 .23670 .22836 .22042 .21285 .20563 .19875 .19218 .1859254.................................................. .26563 .25631 .24742 .23895 .23086 .22315 .21579 .20876 .20204 .1956255.................................................. .27692 .26747 .25846 .24986 .24164 .23379 .22628 .21911 .21225 .2056856.................................................. .28850 .27895 .26982 .26109 .25275 .24476 .23712 .22981 .22281 .2161157.................................................. .30041 .29076 .28152 .27267 .26421 .25610 .24833 .24089 .23376 .2269158.................................................. .31263 .30288 .29355 .28460 .27602 .26780 .25991 .25234 .24508 .2381159.................................................. .32515 .31532 .30590 .29685 .28817 .27984 .27184 .26416 .25677 .2496860.................................................. .33793 .32803 .31853 .30940 .30062 .29219 .28409 .27630 .26880 .2615961.................................................. .35093 .34098 .33141 .32220 .31335 .30483 .29663 .28873 .28113 .2738162.................................................. .36414 .35414 .34451 .33524 .32631 .31771 .30942 .30144 .29374 .2863163.................................................. .37754 .36750 .35783 .34850 .33951 .33084 .32247 .31440 .30661 .2991064.................................................. .39115 .38108 .37137 .36200 .35296 .34422 .33579 .32765 .31978 .3121765.................................................. .40500 .39493 .38519 .37579 .36670 .35792 .34943 .34122 .33328 .3256066.................................................. .41914 .40906 .39932 .38990 .38079 .37197 .36343 .35517 .34717 .3394367.................................................. .43355 .42350 .41376 .40434 .39521 .38636 .37780 .36950 .36145 .3536568.................................................. .44824 .43822 .42851 .41909 .40996 .40111 .39252 .38419 .37611 .36827
69.................................................. .46313 .45316 .44348 .43409 .42498 .41613 .40754 .39919 .39109 .3832270.................................................. .47818 .46827 .45864 .44929 .44020 .43137 .42279 .41445 .40634 .3984571.................................................. .49331 .48348 .47391 .46461 .45557 .44677 .43821 .42988 .42177 .4138872.................................................. .50853 .49879 .48930 .48007 .47108 .46233 .45380 .44550 .43741 .4295273.................................................. .52384 .51421 .50482 .49566 .48674 .47805 .46957 .46130 .45324 .4453874.................................................. .53930 .52979 .52050 .51145 .50261 .49399 .48557 .47736 .46934 .4615275.................................................. .55495 .54557 .53641 .52747 .51873 .51020 .50187 .49372 .48577 .4779976.................................................. .57079 .56157 .55256 .54374 .53513 .52670 .51847 .51041 .50253 .4948377.................................................. .58680 .57775 .56890 .56024 .55176 .54346 .53534 .52739 .51960 .5119878.................................................. .60291 .59405 .58537 .57687 .56855 .56040 .55241 .54458 .53691 .5294079.................................................. .61898 .61032 .60184 .59353 .58537 .57738 .56954 .56185 .55431 .5469180.................................................. .63491 .62647 .61819 .61007 .60210 .59428 .58660 .57907 .57167 .5644181.................................................. .65054 .64234 .63427 .62636 .61858 .61094 .60344 .59606 .58882 .5817082.................................................. .66582 .65784 .65000 .64229 .63472 .62727 .61994 .61274 .60566 .5987083.................................................. .68065 .67291 .66530 .65781 .65044 .64319 .63605 .62903 .62212 .6153284.................................................. .69508 .68758 .68020 .67293 .66577 .65872 .65178 .64495 .63821 .6315885.................................................. .70915 .70190 .69475 .68770 .68076 .67392 .66718 .66054 .65399 .6475486.................................................. .72274 .71573 .70882 .70200 .69528 .68865 .68212 .67567 .66931 .6630487.................................................. .73569 .72892 .72224 .71565 .70915 .70273 .69639 .69014 .68397 .6778888.................................................. .74807 .74154 .73509 .72872 .72243 .71622 .71009 .70403 .69805 .6921489.................................................. .76010 .75381 .74759 .74144 .73537 .72937 .72344 .71758 .71179 .7060790.................................................. .77189 .76584 .75985 .75394 .74809 .74230 .73659 .73093 .72534 .7198191.................................................. .78327 .77746 .77171 .76603 .76040 .75484 .74933 .74388 .73850 .7331692.................................................. .79399 .78841 .78289 .77743 .77202 .76667 .76137 .75613 .75093 .7457993.................................................. .80394 .79858 .79328 .78803 .78283 .77768 .77258 .76753 .76252 .7575794.................................................. .81303 .80788 .80278 .79773 .79272 .78776 .78284 .77797 .77315 .7683795.................................................. .82124 .81628 .81136 .80649 .80166 .79687 .79213 .78742 .78276 .7781496.................................................. .82851 .82372 .81897 .81426 .80959 .80496 .80036 .79581 .79129 .7868297.................................................. .83512 .83048 .82588 .82132 .81679 .81230 .80785 .80343 .79905 .7947198.................................................. .84106 .83656 .83210 .82767 .82328 .81892 .81459 .81030 .80604 .8018199.................................................. .84655 .84218 .83785 .83354 .82927 .82503 .82082 .81664 .81249 .80837100................................................. .85165 .84740 .84318 .83899 .83483 .83070 .82660 .82252 .81848 .81446101................................................. .85652 .85238 .84827 .84419 .84013 .83611 .83210 .82813 .82418 .82026102................................................. .86159 .85757 .85358 .84960 .84566 .84174 .83784 .83397 .83012 .82630103................................................. .86697 .86307 .85920 .85535 .85152 .84771 .84392 .84016 .83642 .83270104................................................. .87295 .86919 .86544 .86172 .85802 .85434 .85068 .84704 .84341 .83981105................................................. .88030 .87672 .87315 .86959 .86605 .86253 .85903 .85554 .85207 .84861106................................................. .89081 .88749 .88418 .88088 .87760 .87433 .87106 .86782 .86458 .86135107................................................. .90588 .90296 .90005 .89715 .89425 .89137 .88849 .88561 .88275 .87989108................................................. .93013 .92791 .92570 .92350 .92129 .91909 .91689 .91469 .91250 .91031109................................................. .96900 .96800 .96700 .96600 .96500 .96400 .96300 .96200 .96100 .96000--------------------------------------------------------------------------------------------------------------------------------------------------------
Table U(1)--Based on Life Table 80CNSMT Unitrust Single Life Remainder Factors
[Applicable after APRIL 30, 1989]--------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted payout rate
Age ---------------------------------------------------------------------------------------------------
8.2% 8.4% 8.6% 8.8% 9.0% 9.2% 9.4% 9.6% 9.8% 10.0%--------------------------------------------------------------------------------------------------------------------------------------------------------0................................................... .02130 .02075 .02025 .01980 .01939 .01901 .01867 .01835 .01806 .017791................................................... .01017 .00960 .00908 .00861 .00819 .00780 .00745 .00712 .00683 .006552................................................... .01011 .00951 .00897 .00848 .00803 .00762 .00725 .00690 .00659 .006303................................................... .01035 .00971 .00914 .00862 .00815 .00771 .00732 .00696 .00663 .006324................................................... .01076 .01009 .00948 .00894 .00843 .00798 .00756 .00718 .00683 .006505................................................... .01130 .01059 .00996 .00938 .00885 .00836 .00792 .00752 .00714 .006806................................................... .01193 .01119 .01051 .00990 .00934 .00883 .00836 .00793 .00754 .007177................................................... .01265 .01187 .01116 .01051 .00992 .00938 .00888 .00842 .00800 .007628................................................... .01347 .01264 .01189 .01121 .01058 .01001 .00948 .00900 .00856 .008159................................................... .01440 .01353 .01274 .01201 .01135 .01075 .01019 .00968 .00921 .0087710.................................................. .01544 .01453 .01369 .01293 .01223 .01159 .01101 .01046 .00997 .0095011.................................................. .01662 .01566 .01478 .01398 .01324 .01257 .01195 .01137 .01085 .0103612.................................................. .01791 .01690 .01597 .01513 .01435 .01364 .01298 .01238 .01182 .0113113.................................................. .01926 .01820 .01722 .01634 .01552 .01477 .01408 .01344 .01285 .0123114.................................................. .02059 .01948 .01846 .01752 .01667 .01588 .01515 .01448 .01386 .0132815.................................................. .02189 .02072 .01965 .01867 .01777 .01694 .01617 .01547 .01481 .0142116.................................................. .02315 .02192 .02080 .01977 .01882 .01795 .01714 .01640 .01572 .0150817.................................................. .02436 .02308 .02190 .02082 .01982 .01891 .01806 .01728 .01656 .01589
18.................................................. .02556 .02422 .02298 .02184 .02080 .01983 .01894 .01812 .01736 .0166519.................................................. .02679 .02537 .02408 .02288 .02178 .02077 .01983 .01897 .01817 .0174220.................................................. .02804 .02656 .02519 .02394 .02278 .02172 .02073 .01982 .01898 .0181921.................................................. .02932 .02776 .02633 .02501 .02380 .02268 .02164 .02068 .01979 .0189622.................................................. .03065 .02902 .02751 .02613 .02485 .02367 .02258 .02157 .02063 .0197623.................................................. .03204 .03033 .02876 .02730 .02595 .02471 .02356 .02249 .02150 .0205824.................................................. .03356 .03176 .03010 .02857 .02716 .02585 .02463 .02351 .02246 .0214925.................................................. .03520 .03332 .03158 .02997 .02848 .02710 .02582 .02463 .02352 .0224926.................................................. .03702 .03504 .03321 .03152 .02995 .02850 .02714 .02589 .02472 .0236327.................................................. .03902 .03695 .03502 .03324 .03159 .03006 .02863 .02730 .02607 .0249228.................................................. .04120 .03902 .03700 .03513 .03339 .03178 .03027 .02887 .02757 .0263529.................................................. .04358 .04129 .03917 .03720 .03537 .03367 .03208 .03061 .02923 .0279430.................................................. .04616 .04376 .04154 .03947 .03754 .03575 .03408 .03251 .03106 .0296931.................................................. .04897 .04646 .04413 .04195 .03993 .03804 .03627 .03463 .03309 .0316532.................................................. .05200 .04938 .04693 .04465 .04252 .04053 .03867 .03693 .03531 .0337833.................................................. .05529 .05254 .04998 .04758 .04534 .04325 .04130 .03946 .03775 .0361434.................................................. .05883 .05595 .05326 .05075 .04840 .04620 .04414 .04221 .04040 .0387035.................................................. .06262 .05961 .05680 .05417 .05170 .04939 .04723 .04520 .04329 .0414936.................................................. .06665 .06351 .06057 .05781 .05523 .05280 .05053 .04839 .04638 .0444937.................................................. .07094 .06766 .06459 .06171 .05900 .05646 .05407 .05182 .04971 .0477138.................................................. .07550 .07208 .06888 .06586 .06303 .06037 .05786 .05550 .05327 .0511839.................................................. .08034 .07678 .07344 .07029 .06733 .06454 .06191 .05943 .05709 .0548940.................................................. .08547 .08177 .07828 .07499 .07190 .06898 .06623 .06363 .06118 .0588641.................................................. .09090 .08704 .08341 .07998 .07675 .07371 .07083 .06811 .06553 .0631042.................................................. .09661 .09260 .08882 .08525 .08188 .07870 .07569 .07284 .07015 .0676043.................................................. .10260 .09844 .09451 .09080 .08729 .08397 .08083 .07785 .07503 .0723644.................................................. .10891 .10459 .10051 .09666 .09300 .08954 .08626 .08316 .08021 .0774145.................................................. .11553 .11106 .10683 .10282 .09902 .09542 .09201 .08876 .08568 .0827646.................................................. .12247 .11784 .11346 .10930 .10536 .10161 .09806 .09468 .09146 .0884147.................................................. .12974 .12496 .12042 .11611 .11202 .10813 .10443 .10091 .09756 .0943848.................................................. .13732 .13238 .12769 .12323 .11899 .11495 .11111 .10745 .10397 .1006549.................................................. .14520 .14011 .13526 .13064 .12625 .12207 .11809 .11429 .11066 .1072150.................................................. .15338 .14812 .14312 .13836 .13381 .12948 .12535 .12141 .11765 .1140551.................................................. .16187 .15646 .15130 .14639 .14169 .13721 .13294 .12885 .12495 .1212152.................................................. .17072 .16516 .15985 .15478 .14993 .14531 .14088 .13665 .13261 .1287353.................................................. .17993 .17422 .16876 .16353 .15854 .15377 .14920 .14482 .14064 .1366254.................................................. .18949 .18362 .17801 .17264 .16750 .16258 .15787 .15335 .14902 .1448655.................................................. .19940 .19339 .18763 .18212 .17683 .17176 .16690 .16224 .15777 .1534856.................................................. .20968 .20353 .19762 .19196 .18654 .18132 .17632 .17152 .16691 .1624757.................................................. .22035 .21406 .20802 .20222 .19665 .19129 .18615 .18121 .17646 .1718958.................................................. .23142 .22499 .21881 .21287 .20717 .20168 .19640 .19132 .18643 .1817259.................................................. .24286 .23630 .23000 .22393 .21809 .21247 .20705 .20184 .19682 .1919860.................................................. .25465 .24797 .24154 .23534 .22938 .22363 .21808 .21274 .20759 .2026261.................................................. .26676 .25996 .25341 .24710 .24101 .23513 .22946 .22399 .21871 .2136162.................................................. .27916 .27225 .26559 .25916 .25295 .24695 .24117 .23557 .23017 .2249563.................................................. .29184 .28483 .27806 .27152 .26520 .25909 .25319 .24748 .24196 .2366164.................................................. .30483 .29772 .29085 .28421 .27779 .27157 .26555 .25973 .25409 .2486365.................................................. .31817 .31098 .30402 .29729 .29076 .28444 .27832 .27240 .26665 .2610866.................................................. .33192 .32466 .31762 .31079 .30418 .29777 .29155 .28552 .27968 .2740067.................................................. .34609 .33876 .33164 .32474 .31805 .31156 .30525 .29913 .29319 .2874268.................................................. .36066 .35328 .34610 .33914 .33238 .32581 .31943 .31323 .30720 .3013469.................................................. .37558 .36815 .36093 .35391 .34709 .34045 .33400 .32773 .32163 .3156970.................................................. .39078 .38332 .37606 .36900 .36213 .35545 .34894 .34260 .33643 .3304271.................................................. .40620 .39872 .39144 .38435 .37744 .37071 .36415 .35776 .35153 .3454772.................................................. .42184 .41435 .40706 .39994 .39301 .38625 .37965 .37322 .36694 .3608273.................................................. .43771 .43023 .42293 .41581 .40886 .40207 .39545 .38899 .38267 .3765174.................................................. .45387 .44641 .43912 .43201 .42505 .41826 .41163 .40514 .39881 .3926175.................................................. .47039 .46296 .45570 .44861 .44167 .43488 .42824 .42175 .41541 .4092076.................................................. .48729 .47991 .47269 .46563 .45872 .45196 .44534 .43886 .43251 .4263077.................................................. .50452 .49722 .49006 .48305 .47619 .46946 .46287 .45642 .45009 .4438978.................................................. .52203 .51481 .50773 .50079 .49399 .48732 .48078 .47437 .46808 .4619179.................................................. .53966 .53254 .52556 .51870 .51198 .50538 .49891 .49255 .48632 .4801980.................................................. .55728 .55028 .54340 .53665 .53002 .52351 .51712 .51083 .50466 .4986081.................................................. .57471 .56784 .56109 .55445 .54792 .54151 .53521 .52901 .52292 .5169282.................................................. .59186 .58512 .57850 .57199 .56558 .55927 .55307 .54697 .54097 .5350683.................................................. .60863 .60204 .59556 .58918 .58289 .57671 .57062 .56462 .55872 .5529084.................................................. .62505 .61862 .61228 .60604 .59989 .59383 .58786 .58198 .57618 .5704785.................................................. .64118 .63491 .62873 .62263 .61663 .61070 .60486 .59911 .59343 .58783
86.................................................. .65685 .65075 .64473 .63879 .63294 .62716 .62145 .61583 .61027 .6047987.................................................. .67187 .66594 .66008 .65430 .64859 .64296 .63739 .63190 .62647 .6211288.................................................. .68631 .68054 .67485 .66923 .66367 .65818 .65276 .64740 .64211 .6368889.................................................. .70042 .69483 .68930 .68384 .67845 .67311 .66784 .66262 .65747 .6523790.................................................. .71434 .70894 .70359 .69830 .69307 .68790 .68278 .67772 .67271 .6677591.................................................. .72789 .72266 .71750 .71239 .70733 .70232 .69736 .69246 .68760 .6828092.................................................. .74070 .73567 .73068 .72574 .72085 .71601 .71121 .70647 .70176 .6971193.................................................. .75266 .74780 .74298 .73821 .73348 .72880 .72417 .71957 .71502 .7105194.................................................. .76363 .75893 .75428 .74967 .74510 .74057 .73608 .73163 .72722 .7228595.................................................. .77356 .76901 .76451 .76005 .75562 .75123 .74688 .74257 .73829 .7340596.................................................. .78237 .77797 .77360 .76927 .76497 .76071 .75648 .75229 .74813 .7440197.................................................. .79039 .78612 .78187 .77766 .77348 .76934 .76523 .76115 .75710 .7530898.................................................. .79762 .79345 .78932 .78522 .78115 .77711 .77310 .76913 .76518 .7612699.................................................. .80429 .80023 .79620 .79220 .78823 .78429 .78038 .77649 .77264 .76881100................................................. .81047 .80651 .80258 .79867 .79479 .79094 .78712 .78332 .77955 .77580101................................................. .81636 .81249 .80865 .80483 .80104 .79727 .79352 .78981 .78611 .78244102................................................. .82250 .81872 .81497 .81124 .80754 .80386 .80020 .79656 .79295 .78936103................................................. .82900 .82532 .82167 .81804 .81442 .81083 .80726 .80371 .80018 .79667104................................................. .83622 .83266 .82911 .82558 .82207 .81858 .81510 .81165 .80821 .80479105................................................. .84517 .84174 .83833 .83494 .83156 .82819 .82485 .82151 .81820 .81489106................................................. .85814 .85494 .85175 .84857 .84540 .84225 .83911 .83598 .83286 .82975107................................................. .87704 .87420 .87136 .86853 .86571 .86290 .86009 .85729 .85450 .85171108................................................. .90812 .90593 .90375 .90156 .89939 .89721 .89504 .89286 .89070 .88853109................................................. .95900 .95800 .95700 .95600 .95500 .95400 .95300 .95200 .95100 .95000--------------------------------------------------------------------------------------------------------------------------------------------------------
Table U(1)--Based on Life Table 80CNSMT Unitrust Single Life Remainder Factors
[Applicable after APRIL 30, 1989]--------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted payout rate
Age ---------------------------------------------------------------------------------------------------
10.2% 10.4% 10.6% 10.8% 11.0% 11.2% 11.4% 11.6% 11.8% 12.0%--------------------------------------------------------------------------------------------------------------------------------------------------------0................................................... .01754 .01731 .01710 .01690 .01671 .01654 .01638 .01622 .01608 .015941................................................... .00630 .00607 .00585 .00565 .00547 .00530 .00514 .00499 .00485 .004722................................................... .00604 .00579 .00557 .00536 .00516 .00498 .00481 .00465 .00451 .004373................................................... .00604 .00578 .00554 .00532 .00511 .00492 .00474 .00458 .00442 .004274................................................... .00621 .00593 .00568 .00544 .00522 .00502 .00483 .00465 .00448 .004335................................................... .00648 .00619 .00592 .00567 .00544 .00522 .00502 .00483 .00465 .004496................................................... .00684 .00653 .00624 .00597 .00572 .00549 .00528 .00507 .00489 .004717................................................... .00726 .00693 .00663 .00634 .00608 .00583 .00560 .00539 .00518 .004998................................................... .00777 .00742 .00709 .00679 .00651 .00624 .00600 .00577 .00555 .005359................................................... .00837 .00800 .00765 .00733 .00703 .00675 .00649 .00625 .00602 .0058010.................................................. .00908 .00868 .00832 .00797 .00765 .00736 .00708 .00682 .00657 .0063411.................................................. .00991 .00949 .00910 .00874 .00840 .00808 .00779 .00751 .00725 .0070012.................................................. .01083 .01039 .00997 .00959 .00923 .00890 .00858 .00829 .00801 .0077513.................................................. .01181 .01134 .01090 .01049 .01012 .00976 .00943 .00912 .00883 .0085514.................................................. .01275 .01226 .01180 .01137 .01097 .01060 .01025 .00992 .00961 .0093215.................................................. .01365 .01313 .01264 .01219 .01177 .01138 .01101 .01066 .01034 .0100316.................................................. .01449 .01394 .01343 .01295 .01251 .01209 .01171 .01134 .01100 .0106817.................................................. .01526 .01469 .01415 .01365 .01318 .01274 .01233 .01195 .01159 .0112518.................................................. .01600 .01539 .01482 .01430 .01380 .01334 .01291 .01251 .01213 .0117719.................................................. .01673 .01609 .01550 .01494 .01442 .01393 .01348 .01305 .01265 .0122720.................................................. .01747 .01679 .01616 .01557 .01502 .01451 .01403 .01358 .01316 .0127621.................................................. .01820 .01748 .01682 .01620 .01562 .01508 .01457 .01409 .01365 .0132322.................................................. .01895 .01819 .01749 .01683 .01622 .01565 .01511 .01461 .01414 .0136923.................................................. .01972 .01893 .01818 .01749 .01684 .01624 .01567 .01514 .01464 .0141724.................................................. .02058 .01974 .01895 .01822 .01753 .01689 .01629 .01572 .01519 .0146925.................................................. .02154 .02064 .01981 .01903 .01830 .01762 .01698 .01638 .01582 .0152926.................................................. .02262 .02167 .02079 .01996 .01919 .01847 .01779 .01715 .01655 .0159927.................................................. .02385 .02284 .02191 .02103 .02021 .01944 .01872 .01804 .01740 .0168028.................................................. .02521 .02415 .02316 .02222 .02135 .02053 .01977 .01904 .01836 .0177229.................................................. .02673 .02561 .02455 .02357 .02264 .02177 .02095 .02018 .01946 .0187730.................................................. .02842 .02723 .02611 .02506 .02407 .02315 .02227 .02146 .02068 .0199631.................................................. .03030 .02903 .02784 .02673 .02568 .02470 .02377 .02290 .02207 .0213032.................................................. .03235 .03101 .02976 .02857 .02746 .02641 .02543 .02450 .02362 .0227933.................................................. .03463 .03321 .03188 .03062 .02944 .02833 .02728 .02629 .02535 .0244734.................................................. .03711 .03561 .03419 .03286 .03161 .03043 .02931 .02826 .02726 .02632
35.................................................. .03981 .03822 .03672 .03531 .03398 .03273 .03154 .03042 .02936 .0283636.................................................. .04271 .04103 .03945 .03796 .03655 .03522 .03396 .03277 .03164 .0305737.................................................. .04584 .04407 .04239 .04081 .03932 .03791 .03657 .03531 .03411 .0329738.................................................. .04920 .04733 .04556 .04389 .04231 .04082 .03940 .03806 .03679 .0355839.................................................. .05280 .05083 .04897 .04721 .04554 .04396 .04246 .04103 .03968 .0384040.................................................. .05667 .05459 .05263 .05077 .04901 .04733 .04575 .04424 .04280 .0414441.................................................. .06080 .05861 .05655 .05459 .05272 .05096 .04928 .04768 .04617 .0447242.................................................. .06518 .06289 .06071 .05864 .05668 .05482 .05305 .05136 .04975 .0482243.................................................. .06982 .06742 .06513 .06296 .06089 .05893 .05706 .05528 .05358 .0519644.................................................. .07475 .07223 .06983 .06754 .06537 .06330 .06133 .05945 .05766 .0559545.................................................. .07998 .07733 .07481 .07242 .07014 .06796 .06588 .06390 .06202 .0602146.................................................. .08550 .08273 .08010 .07758 .07519 .07290 .07072 .06864 .06665 .0647447.................................................. .09134 .08845 .08569 .08306 .08055 .07815 .07586 .07367 .07157 .0695748.................................................. .09748 .09446 .09158 .08882 .08619 .08368 .08128 .07898 .07678 .0746749.................................................. .10391 .10076 .09775 .09487 .09212 .08949 .08697 .08456 .08225 .0800350.................................................. .11062 .10734 .10420 .10120 .09832 .09557 .09293 .09041 .08798 .0856651.................................................. .11764 .11423 .11096 .10783 .10483 .10195 .09919 .09655 .09401 .0915852.................................................. .12503 .12148 .11807 .11481 .11168 .10868 .10581 .10304 .10039 .0978453.................................................. .13278 .12909 .12556 .12216 .11891 .11578 .11278 .10989 .10712 .1044554.................................................. .14088 .13706 .13339 .12986 .12648 .12322 .12009 .11709 .11419 .1114155.................................................. .14936 .14540 .14159 .13793 .13442 .13103 .12778 .12464 .12163 .1187256.................................................. .15821 .15412 .15018 .14639 .14274 .13923 .13584 .13258 .12944 .1264257.................................................. .16749 .16326 .15918 .15526 .15148 .14784 .14433 .14094 .13768 .1345358.................................................. .17719 .17282 .16862 .16456 .16065 .15688 .15324 .14973 .14634 .1430659.................................................. .18731 .18281 .17847 .17429 .17025 .16634 .16258 .15894 .15543 .1520360.................................................. .19782 .19319 .18872 .18440 .18023 .17621 .17231 .16855 .16491 .1613961.................................................. .20869 .20393 .19934 .19489 .19060 .18644 .18242 .17854 .17477 .1711362.................................................. .21990 .21502 .21029 .20573 .20131 .19703 .19289 .18887 .18499 .1812363.................................................. .23144 .22644 .22159 .21690 .21236 .20796 .20370 .19956 .19556 .1916764.................................................. .24335 .23823 .23326 .22845 .22379 .21927 .21489 .21063 .20651 .2025065.................................................. .25568 .25045 .24537 .24044 .23566 .23103 .22653 .22216 .21791 .2137966.................................................. .26850 .26316 .25797 .25293 .24804 .24329 .23868 .23420 .22984 .2256067.................................................. .28182 .27637 .27108 .26594 .26095 .25609 .25137 .24678 .24231 .2379768.................................................. .29565 .29011 .28472 .27949 .27439 .26943 .26461 .25991 .25534 .2508969.................................................. .30991 .30429 .29882 .29349 .28830 .28325 .27833 .27354 .26887 .2643270.................................................. .32457 .31887 .31332 .30791 .30264 .29750 .29249 .28760 .28284 .2782071.................................................. .33955 .33378 .32816 .32267 .31732 .31210 .30701 .30204 .29719 .2924672.................................................. .35485 .34902 .34333 .33778 .33236 .32707 .32190 .31686 .31193 .3071173.................................................. .37049 .36461 .35887 .35326 .34778 .34242 .33719 .33207 .32707 .3221874.................................................. .38656 .38064 .37485 .36920 .36366 .35825 .35296 .34778 .34272 .3377675.................................................. .40312 .39717 .39136 .38566 .38009 .37464 .36930 .36407 .35895 .3539476.................................................. .42022 .41426 .40842 .40271 .39711 .39163 .38625 .38099 .37583 .3707777.................................................. .43782 .43187 .42603 .42031 .41470 .40920 .40380 .39851 .39332 .3882378.................................................. .45586 .44992 .44410 .43839 .43278 .42728 .42188 .41658 .41138 .4062779.................................................. .47418 .46828 .46248 .45679 .45120 .44572 .44033 .43503 .42983 .4247280.................................................. .49264 .48679 .48103 .47538 .46982 .46436 .45900 .45372 .44853 .4434381.................................................. .51103 .50524 .49954 .49394 .48843 .48301 .47768 .47243 .46727 .4621982.................................................. .52925 .52352 .51789 .51235 .50690 .50153 .49624 .49104 .48591 .4808783.................................................. .54718 .54154 .53598 .53051 .52512 .51981 .51459 .50943 .50436 .4993684.................................................. .56484 .55930 .55383 .54844 .54313 .53789 .53273 .52764 .52262 .5176785.................................................. .58231 .57686 .57149 .56619 .56096 .55581 .55072 .54571 .54076 .5358886.................................................. .59939 .59405 .58878 .58358 .57845 .57339 .56839 .56346 .55858 .5537787.................................................. .61583 .61061 .60545 .60035 .59532 .59035 .58545 .58060 .57581 .5710888.................................................. .63171 .62661 .62156 .61658 .61165 .60678 .60196 .59721 .59251 .5878689.................................................. .64733 .64235 .63742 .63255 .62774 .62298 .61827 .61361 .60900 .6044490.................................................. .66285 .65801 .65321 .64847 .64377 .63913 .63453 .62998 .62548 .6210391.................................................. .67804 .67334 .66868 .66407 .65950 .65498 .65050 .64607 .64169 .6373592.................................................. .69250 .68793 .68341 .67893 .67450 .67011 .66575 .66144 .65718 .6529593.................................................. .70604 .70162 .69723 .69288 .68858 .68431 .68008 .67589 .67174 .6676294.................................................. .71852 .71422 .70997 .70575 .70156 .69742 .69331 .68923 .68519 .6811995.................................................. .72984 .72567 .72154 .71744 .71337 .70934 .70534 .70137 .69744 .6935496.................................................. .73992 .73586 .73183 .72784 .72388 .71995 .71605 .71218 .70835 .7045497.................................................. .74910 .74514 .74122 .73733 .73346 .72963 .72582 .72205 .71830 .7145898.................................................. .75737 .75351 .74967 .74587 .74209 .73835 .73463 .73093 .72727 .7236399.................................................. .76501 .76123 .75748 .75376 .75007 .74640 .74276 .73914 .73555 .73198100................................................. .77208 .76838 .76471 .76107 .75745 .75385 .75028 .74673 .74321 .73971101................................................. .77879 .77517 .77157 .76800 .76444 .76092 .75741 .75392 .75046 .74702102................................................. .78579 .78224 .77871 .77521 .77173 .76827 .76483 .76141 .75801 .75463
103................................................. .79318 .78971 .78626 .78283 .77942 .77604 .77266 .76931 .76598 .76267104................................................. .80139 .79801 .79464 .79129 .78796 .78465 .78136 .77808 .77482 .77157105................................................. .81161 .80834 .80508 .80184 .79861 .79540 .79220 .78902 .78585 .78270106................................................. .82665 .82357 .82049 .81743 .81438 .81134 .80831 .80530 .80229 .79930107................................................. .84893 .84616 .84340 .84064 .83789 .83515 .83241 .82969 .82696 .82425108................................................. .88637 .88421 .88205 .87989 .87774 .87559 .87344 .87129 .86915 .86701109................................................. .94900 .94800 .94700 .94600 .94500 .94400 .94300 .94200 .94100 .94000--------------------------------------------------------------------------------------------------------------------------------------------------------
Table U(1)--Based on Life Table 80CNSMT Unitrust Single Life Remainder Factors
[Applicable after April 30, 1989]--------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted payout rate
Age ---------------------------------------------------------------------------------------------------
12.2% 12.4% 12.6% 12.8% 13.0% 13.2% 13.4% 13.6% 13.8% 14.0%--------------------------------------------------------------------------------------------------------------------------------------------------------0................................................... .01581 .01569 .01557 .01546 .01536 .01526 .01516 .01507 .01499 .014901................................................... .00459 .00448 .00437 .00426 .00417 .00407 .00399 .00390 .00382 .003752................................................... .00424 .00412 .00400 .00389 .00379 .00369 .00360 .00352 .00343 .003353................................................... .00414 .00401 .00389 .00377 .00366 .00356 .00346 .00337 .00328 .003204................................................... .00418 .00404 .00391 .00379 .00368 .00357 .00347 .00337 .00327 .003195................................................... .00433 .00418 .00405 .00391 .00379 .00368 .00357 .00346 .00336 .003276................................................... .00454 .00439 .00424 .00410 .00397 .00384 .00372 .00361 .00351 .003417................................................... .00482 .00465 .00449 .00434 .00420 .00407 .00394 .00382 .00371 .003608................................................... .00516 .00498 .00481 .00465 .00450 .00436 .00422 .00410 .00397 .003869................................................... .00560 .00541 .00523 .00505 .00489 .00474 .00459 .00446 .00433 .0042010.................................................. .00613 .00592 .00573 .00555 .00537 .00521 .00505 .00491 .00477 .0046311.................................................. .00677 .00655 .00635 .00615 .00597 .00580 .00563 .00547 .00532 .0051812.................................................. .00751 .00728 .00706 .00685 .00666 .00647 .00629 .00613 .00597 .0058113.................................................. .00829 .00805 .00782 .00760 .00739 .00719 .00701 .00683 .00666 .0065014.................................................. .00905 .00879 .00854 .00831 .00809 .00789 .00769 .00750 .00732 .0071515.................................................. .00974 .00947 .00921 .00897 .00874 .00852 .00831 .00811 .00793 .0077516.................................................. .01037 .01009 .00982 .00956 .00932 .00909 .00887 .00866 .00846 .0082717.................................................. .01093 .01063 .01034 .01007 .00982 .00958 .00935 .00913 .00892 .0087318.................................................. .01143 .01112 .01082 .01053 .01027 .01001 .00977 .00954 .00933 .0091219.................................................. .01192 .01159 .01127 .01097 .01069 .01043 .01017 .00993 .00970 .0094920.................................................. .01239 .01204 .01170 .01139 .01109 .01081 .01055 .01029 .01005 .0098321.................................................. .01283 .01246 .01211 .01178 .01147 .01117 .01089 .01063 .01037 .0101322.................................................. .01328 .01288 .01251 .01216 .01183 .01152 .01122 .01094 .01067 .0104223.................................................. .01372 .01331 .01292 .01254 .01219 .01186 .01155 .01125 .01097 .0107024.................................................. .01422 .01378 .01336 .01297 .01260 .01225 .01191 .01160 .01130 .0110125.................................................. .01479 .01432 .01388 .01346 .01306 .01269 .01233 .01200 .01168 .0113826.................................................. .01545 .01495 .01448 .01404 .01362 .01322 .01284 .01248 .01214 .0118227.................................................. .01623 .01570 .01520 .01472 .01427 .01385 .01344 .01306 .01270 .0123528.................................................. .01712 .01655 .01601 .01551 .01503 .01457 .01414 .01373 .01334 .0129829.................................................. .01813 .01752 .01695 .01641 .01589 .01541 .01494 .01451 .01409 .0137030.................................................. .01927 .01862 .01801 .01743 .01688 .01635 .01586 .01539 .01495 .0145231.................................................. .02056 .01987 .01922 .01859 .01801 .01745 .01692 .01642 .01594 .0154832.................................................. .02201 .02127 .02057 .01990 .01927 .01868 .01811 .01757 .01706 .0165733.................................................. .02363 .02284 .02209 .02138 .02071 .02007 .01946 .01888 .01833 .0178134.................................................. .02543 .02458 .02378 .02302 .02230 .02162 .02096 .02034 .01975 .0191935.................................................. .02741 .02651 .02565 .02484 .02407 .02333 .02264 .02197 .02134 .0207336.................................................. .02956 .02859 .02768 .02681 .02599 .02520 .02446 .02374 .02307 .0224237.................................................. .03189 .03087 .02990 .02897 .02809 .02725 .02645 .02569 .02496 .0242738.................................................. .03443 .03334 .03230 .03131 .03037 .02948 .02862 .02781 .02703 .0262839.................................................. .03718 .03602 .03491 .03386 .03285 .03190 .03099 .03011 .02928 .0284940.................................................. .04015 .03891 .03774 .03662 .03555 .03453 .03355 .03262 .03173 .0308841.................................................. .04335 .04204 .04079 .03959 .03846 .03737 .03633 .03534 .03439 .0334842.................................................. .04677 .04538 .04405 .04278 .04157 .04042 .03931 .03825 .03724 .0362743.................................................. .05042 .04894 .04754 .04619 .04491 .04368 .04250 .04138 .04030 .0392644.................................................. .05432 .05276 .05127 .04984 .04848 .04718 .04593 .04473 .04358 .0424845.................................................. .05849 .05684 .05526 .05375 .05231 .05092 .04960 .04832 .04710 .0459346.................................................. .06292 .06118 .05952 .05792 .05639 .05492 .05352 .05217 .05087 .0496347.................................................. .06765 .06581 .06405 .06237 .06075 .05920 .05771 .05628 .05491 .0535948.................................................. .07265 .07071 .06886 .06708 .06537 .06373 .06216 .06064 .05919 .0577949.................................................. .07791 .07587 .07392 .07204 .07024 .06851 .06685 .06525 .06371 .0622350.................................................. .08343 .08129 .07923 .07726 .07536 .07354 .07178 .07009 .06847 .0669051.................................................. .08924 .08699 .08483 .08276 .08076 .07884 .07699 .07520 .07349 .07183
52.................................................. .09539 .09303 .09076 .08858 .08648 .08446 .08251 .08064 .07883 .0770853.................................................. .10189 .09942 .09704 .09475 .09255 .09043 .08838 .08640 .08450 .0826654.................................................. .10872 .10614 .10365 .10126 .09894 .09672 .09456 .09249 .09049 .0885555.................................................. .11592 .11322 .11062 .10811 .10569 .10335 .10110 .09892 .09682 .0947856.................................................. .12350 .12068 .11796 .11534 .11281 .11036 .10800 .10571 .10350 .1013757.................................................. .13148 .12855 .12572 .12298 .12033 .11777 .11530 .11291 .11060 .1083658.................................................. .13990 .13685 .13389 .13104 .12828 .12561 .12303 .12053 .11811 .1157659.................................................. .14875 .14557 .14250 .13953 .13665 .13387 .13118 .12856 .12604 .1235960.................................................. .15799 .15469 .15150 .14841 .14542 .14253 .13972 .13700 .13436 .1318061.................................................. .16761 .16419 .16088 .15768 .15457 .15156 .14864 .14580 .14305 .1403962.................................................. .17758 .17404 .17062 .16729 .16407 .16094 .15791 .15496 .15210 .1493263.................................................. .18791 .18425 .18071 .17726 .17392 .17068 .16753 .16447 .16150 .1586164.................................................. .19862 .19484 .19118 .18762 .18417 .18081 .17754 .17437 .17129 .1682965.................................................. .20979 .20590 .20212 .19845 .19487 .19140 .18802 .18474 .18154 .1784366.................................................. .22149 .21748 .21359 .20980 .20612 .20253 .19904 .19564 .19233 .1891167.................................................. .23374 .22962 .22562 .22172 .21792 .21423 .21062 .20712 .20370 .2003768.................................................. .24656 .24234 .23822 .23422 .23031 .22651 .22280 .21919 .21566 .2122269.................................................. .25988 .25556 .25134 .24724 .24323 .23932 .23551 .23179 .22816 .2246170.................................................. .27367 .26925 .26493 .26073 .25662 .25261 .24870 .24488 .24115 .2375071.................................................. .28784 .28333 .27892 .27462 .27042 .26631 .26230 .25839 .25456 .2508272.................................................. .30241 .29781 .29332 .28893 .28464 .28044 .27634 .27233 .26841 .2645773.................................................. .31740 .31272 .30815 .30368 .29930 .29502 .29084 .28674 .28273 .2788074.................................................. .33291 .32817 .32352 .31897 .31452 .31016 .30589 .30171 .29762 .2936175.................................................. .34903 .34422 .33951 .33490 .33038 .32595 .32161 .31735 .31318 .3090976.................................................. .36581 .36095 .35619 .35152 .34694 .34245 .33805 .33373 .32949 .3253377.................................................. .38324 .37835 .37354 .36883 .36420 .35966 .35520 .35083 .34654 .3423278.................................................. .40126 .39634 .39150 .38676 .38210 .37752 .37302 .36861 .36427 .3600179.................................................. .41970 .41476 .40992 .40515 .40047 .39587 .39135 .38690 .38253 .3782380.................................................. .43842 .43348 .42864 .42387 .41918 .41456 .41002 .40556 .40117 .3968581.................................................. .45719 .45228 .44744 .44267 .43799 .43337 .42883 .42436 .41996 .4156282.................................................. .47590 .47101 .46619 .46145 .45677 .45217 .44764 .44317 .43877 .4344383.................................................. .49443 .48957 .48478 .48007 .47542 .47084 .46632 .46187 .45748 .4531584.................................................. .51279 .50798 .50324 .49856 .49394 .48939 .48490 .48048 .47611 .4718085.................................................. .53106 .52630 .52161 .51698 .51241 .50790 .50345 .49906 .49473 .4904586.................................................. .54902 .54434 .53971 .53514 .53062 .52616 .52176 .51741 .51312 .5088887.................................................. .56640 .56178 .55722 .55271 .54826 .54386 .53951 .53521 .53097 .5267788.................................................. .58326 .57872 .57423 .56979 .56541 .56107 .55678 .55254 .54834 .5442089.................................................. .59994 .59548 .59107 .58671 .58240 .57813 .57391 .56973 .56560 .5615290.................................................. .61662 .61226 .60794 .60367 .59944 .59526 .59112 .58702 .58296 .5789491.................................................. .63305 .62879 .62457 .62040 .61627 .61217 .60812 .60411 .60013 .5961992.................................................. .64876 .64461 .64050 .63643 .63239 .62839 .62443 .62051 .61662 .6127793.................................................. .66355 .65950 .65550 .65153 .64759 .64369 .63983 .63600 .63220 .6284394.................................................. .67722 .67328 .66938 .66551 .66167 .65786 .65409 .65035 .64664 .6429695.................................................. .68967 .68583 .68203 .67825 .67451 .67079 .66711 .66345 .65983 .6562396.................................................. .70076 .69701 .69330 .68961 .68595 .68231 .67871 .67513 .67158 .6680697.................................................. .71089 .70722 .70359 .69998 .69640 .69284 .68931 .68581 .68234 .6788898.................................................. .72001 .71642 .71286 .70933 .70582 .70233 .69887 .69544 .69203 .6886499.................................................. .72844 .72492 .72143 .71796 .71452 .71110 .70770 .70433 .70098 .69765100................................................. .73623 .73278 .72935 .72594 .72256 .71920 .71586 .71254 .70924 .70597101................................................. .74361 .74021 .73684 .73349 .73016 .72685 .72356 .72029 .71704 .71382102................................................. .75128 .74794 .74463 .74133 .73806 .73480 .73157 .72835 .72515 .72198103................................................. .75938 .75610 .75284 .74961 .74639 .74319 .74000 .73684 .73369 .73056104................................................. .76835 .76514 .76194 .75877 .75561 .75246 .74934 .74623 .74313 .74005105................................................. .77956 .77643 .77332 .77023 .76714 .76408 .76102 .75798 .75496 .75195106................................................. .79632 .79334 .79038 .78743 .78449 .78157 .77865 .77575 .77285 .76997107................................................. .82154 .81884 .81615 .81346 .81079 .80811 .80545 .80279 .80014 .79750108................................................. .86487 .86274 .86061 .85848 .85635 .85423 .85210 .84998 .84787 .84575109................................................. .93900 .93800 .93700 .93600 .93500 .93400 .93300 .93200 .93100 .93000--------------------------------------------------------------------------------------------------------------------------------------------------------
(f) Valuation of charitable remainder unitrusts having certain payout sequences for transfers for which the valuation date is after April 30, 1999, and before May 1, 2009--(1) In general. Except as otherwise provided in paragraph (f)(2) of this section, in the case of transfers for which the valuation date is after April 30, 1999, and before May 1, 2009, the present value of a remainder interest is determined under paragraphs (f)(3) through (f)(6) of this section, provided that the amount of the payout as of any payout date during any taxable year of the trust is not larger than the amount that the trust could distribute on such date under Sec. 1.664-3(a)(1)(v) if the taxable year of the trust were to end on such date. See, however, Sec. 1.7520-3(b) (relating to exceptions to the use of the prescribed tables under certain circumstances).
(1) In general. Except as otherwise provided in paragraph (f)(2) of this section, in the case of transfers for which the valuation date is after April 30, 1999, and before May 1, 2009, the present value of a remainder interest is determined under paragraphs (f)(3) through (f)(6) of this section, provided that the amount of the payout as of any payout date during any taxable year of the trust is not larger than the amount that the trust could distribute on such date under Sec. 1.664-3(a)(1)(v) if the taxable year of the trust were to end on such date. See, however, Sec. 1.7520-3(b) (relating to exceptions to the use of the prescribed tables under certain circumstances).
(2) Transitional rules for valuation of charitable remainder unitrusts. (i) For purposes of sections 2055, 2106, or 2624, if on May 1, 1999, the decedent was mentally incompetent so that the disposition of the property could not be changed, and the decedent died after April 30, 1999, without having regained competency to dispose of the decedent's property, or the decedent died within 90 days of the date that the decedent first regained competency after April 30, 1999, the present value of a remainder interest under this section is determined as if the valuation date with respect to the decedent's gross estate is either before May 1, 1999, or after April 30, 1999, at the option of the decedent's executor.
(i) For purposes of sections 2055, 2106, or 2624, if on May 1, 1999, the decedent was mentally incompetent so that the disposition of the property could not be changed, and the decedent died after April 30, 1999, without having regained competency to dispose of the decedent's property, or the decedent died within 90 days of the date that the decedent first regained competency after April 30, 1999, the present value of a remainder interest under this section is determined as if the valuation date with respect to the decedent's gross estate is either before May 1, 1999, or after April 30, 1999, at the option of the decedent's executor.
(ii) For purposes of sections 170, 2055, 2106, 2522, or 2624, in the case of transfers to a charitable remainder unitrust for which the valuation date is after April 30, 1999, and before July 1, 1999, the present value of a remainder interest based on one or more measuring lives is determined under this section by use of the section 7520 interest rate for the month in which the valuation date occurs (see Sec. Sec. 1.7520-1(b) and 1.7520-2(a)(2)) and the appropriate actuarial tables under either paragraph (e)(6) or (f)(6) of this section, at the option of the donor or the decedent's executor, as the case may be.
(iii) For purposes of paragraphs (f)(2)(i) and (f)(2)(ii) of this section, where the donor or decedent's executor is given the option to use the appropriate actuarial tables under either paragraph (e)(6) or (f)(6) of this section, the donor or decedent's executor must use the same actuarial table with respect to each individual transaction and with respect to all transfers occurring on the valuation date (for example, gift and income tax charitable deductions with respect to the same transfer must be determined based on the same tables, and all assets includible in the gross estate and/or estate tax deductions claimed must be valued based on the same tables).
(3) Adjusted payout rate. For transfers for which the valuation date is after April 30, 1999, and before May 1, 2009, the adjusted payout rate is determined by using the appropriate Table F, contained in Sec. 1.664-4(e)(6), for the section 7520 interest rate applicable to the transfer. If the interest rate is between 4.2 and 14 percent, see Sec. 1.664-4(e)(6). If the interest rate is below 4.2 percent or greater than 14 percent, see Sec. 1.664-4(b). See Sec. 1.664-4(e) for rules applicable in determining the adjusted payout rate.
(4) Period is a term of years. If the period described in Sec. 1.664-3(a)(5) is a term of years, the factor that is used in determining the present value of the remainder interest for transfers for which the valuation date is after April 30, 1999, and before May 1, 2009, is the factor under the appropriate adjusted payout rate in Table D in Sec. 1.664-4(e)(6) corresponding to the number of years in the term. If the adjusted payout rate is an amount that is between adjusted payout rates for which factors are provided in Table D, a linear interpolation must be made. The present value of the remainder interest is determined by multiplying the net fair market value (as of the appropriate valuation date) of the property placed in trust by the factor determined under this paragraph. Generally, for purposes of this section, the valuation date is, in the case of an inter vivos transfer, the date on which the property is transferred to the trust by the donor, and, in the case of a testamentary transfer under sections 2055, 2106, or 2624, the valuation date is the date of death. See Sec. 1.664-4(e)(4) for additional rules regarding the valuation date. See Sec. 1.664-4(e)(4) for an example that illustrates the application of this paragraph (f)(4).
(5) Period is the life of one individual. If the period described in Sec. 1.664-3(a)(5) is the life of one individual, the factor that is used in determining the present value of the remainder interest for transfers for which the valuation date is after April 30, 1999, and before May 1, 2009, is the factor in Table U(1) in paragraph (f)(6) of this section under the appropriate adjusted payout. For purposes of the computations described in this paragraph (f)(5), the age of an individual is the age of that individual at the individual's nearest birthday. If the adjusted payout rate is an amount that is between adjusted payout rates for which factors are provided in the appropriate table, a linear interpolation must be made. The rules provided in Sec. 1.664-4(e)(5) apply for determining the present value of the remainder interest. See Sec. 1.664-4(e)(5) for an example illustrating the application of this paragraph (f)(5) (using current actuarial tables).
(6) Actuarial Table U(1) for transfers for which the valuation date is after April 30, 1999, and before May 1, 2009. For transfers for which the valuation date is after April 30, 1999, and before May 1, 2009, the present value of a charitable remainder unitrust interest that is dependent on the termination of a life interest is determined by using the section 7520 rate, Table U(1) in this paragraph (f)(6), and Tables F(4.2) through F(14.0) in Sec. 1.664-4(e)(6). See, however, Sec. 1.7520-3(b) (relating to exceptions to the use of prescribed tables under certain circumstances). Many actuarial factors not contained in the following tables are contained in Internal Revenue Service Publication 1458, ``Actuarial Values, Book Beth,'' (7-1999). Publication 1458 is no longer available for purchase from the Superintendent of Documents, United States Government Printing Office. However, pertinent factors in this publication may be obtained by a written request to: CC:PA:LPD:PR (IRS Publication 1458), Room 5205, Internal Revenue Service, P.O.Box 7604, Ben Franklin Station, Washington, DC 20044.
Table U(1)--Based on Life Table 90CM Unitrust Single Life Remainder Factors
[Applicable After April 30, 1999, and Before May 1, 2009]--------------------------------------------------------------------------------------------------------------------------------------------------------
Interest rate
Age -----------------------------------------------------------------------------------------
4.2% 4.4% 4.6% 4.8% 5.0% 5.2% 5.4% 5.6% .8% 6.0%--------------------------------------------------------------------------------------------------------------------------------------------------------0............................................................. .06177 .05580 .05061 .04609 .04215 .03871 .03570 .03307 .03075 .028721............................................................. .05543 .04925 .04388 .03919 .03509 .03151 .02838 .02563 .02321 .021092............................................................. .05716 .05081 .04528 .04045 .03622 .03252 .02927 .02642 .02391 .021703............................................................. .05920 .05268 .04699 .04201 .03765 .03382 .03046 .02750 .02490 .022604............................................................. .06143 .05475 .04889 .04376 .03926 .03530 .03182 .02876 .02605 .023665............................................................. .06384 .05697 .05095 .04567 .04103 .03694 .03334 .03016 .02735 .024876............................................................. .06637 .05933 .05315 .04771 .04292 .03870 .03497 .03168 .02876 .026187............................................................. .06905 .06183 .05547 .04987 .04494 .04058 .03673 .03332 .03029 .027618............................................................. .07186 .06445 .05792 .05216 .04708 .04258 .03859 .03506 .03192 .029149............................................................. .07482 .06722 .06052 .05460 .04936 .04471 .04060 .03694 .03369 .0307910............................................................ .07793 .07015 .06327 .05718 .05179 .04700 .04274 .03896 .03559 .0325911............................................................ .08120 .07323 .06617 .05991 .05435 .04942 .04502 .04111 .03762 .0345012............................................................ .08461 .07645 .06920 .06277 .05706 .05197 .04744 .04339 .03978 .0365513............................................................ .08812 .07976 .07234 .06574 .05985 .05461 .04993 .04576 .04202 .0386714............................................................ .09168 .08313 .07552 .06874 .06269 .05729 .05247 .04815 .04428 .0408115............................................................ .09527 .08652 .07872 .07176 .06554 .05999 .05501 .05055 .04655 .0429616............................................................ .09886 .08991 .08192 .07478 .06839 .06267 .05754 .05294 .04880 .0450817............................................................ .10249 .09334 .08515 .07782 .07126 .06537 .06008 .05533 .05105 .0472018............................................................ .10616 .09680 .08842 .08090 .07415 .06809 .06264 .05774 .05332 .0493319............................................................ .10994 .10037 .09178 .08407 .07714 .07091 .06529 .06023 .05566 .0515320............................................................ .11384 .10406 .09527 .08737 .08025 .07383 .06805 .06283 .05811 .0538421............................................................ .11790 .10790 .09891 .09080 .08349 .07690 .07094 .06555 .06068 .0562622............................................................ .12208 .11188 .10267 .09436 .08686 .08008 .07395 .06839 .06336 .0587923............................................................ .12643 .11601 .10659 .09808 .09038 .08342 .07710 .07138 .06618 .0614624............................................................ .13095 .12031 .11069 .10197 .09408 .08692 .08042 .07452 .06915 .0642725............................................................ .13567 .12481 .11497 .10605 .09795 .09060 .08392 .07784 .07230 .0672626............................................................ .14058 .12950 .11945 .11032 .10202 .09447 .08760 .08134 .07563 .0704227............................................................ .14571 .13442 .12415 .11481 .10631 .09856 .09149 .08505 .07916 .0737928............................................................ .15104 .13953 .12904 .11949 .11078 .10284 .09558 .08895 .08288 .0773329............................................................ .15656 .14484 .13414 .12438 .11546 .10731 .09986 .09304 .08679 .0810630............................................................ .16229 .15034 .13943 .12946 .12034 .11198 .10433 .09732 .09089 .0849831............................................................ .16821 .15605 .14493 .13474 .12541 .11685 .10900 .10179 .09517 .0890932............................................................ .17433 .16196 .15063 .14023 .13069 .12193 .11387 .10647 .09966 .0933933............................................................ .18068 .16810 .15655 .14595 .13620 .12723 .11897 .11137 .10437 .0979134............................................................ .18724 .17446 .16270 .15189 .14193 .13275 .12430 .11650 .10930 .1026535............................................................ .19405 .18107 .16910 .15808 .14791 .13853 .12987 .12187 .11448 .1076436............................................................ .20109 .18791 .17574 .16451 .15414 .14456 .13569 .12749 .11990 .1128737............................................................ .20838 .19500 .18263 .17120 .16062 .15083 .14177 .13337 .12558 .11835
38............................................................ .21593 .20236 .18979 .17816 .16739 .15739 .14813 .13953 .13154 .1241239............................................................ .22374 .20998 .19723 .18540 .17443 .16423 .15477 .14597 .13779 .1301740............................................................ .23183 .21789 .20496 .19294 .18177 .17138 .16172 .15272 .14434 .1365341............................................................ .24021 .22611 .21299 .20079 .18943 .17885 .16899 .15980 .15123 .1432242............................................................ .24889 .23463 .22134 .20896 .19741 .18665 .17660 .16721 .15845 .1502543............................................................ .25786 .24344 .23000 .21744 .20572 .19477 .18453 .17496 .16601 .1576244............................................................ .26712 .25257 .23896 .22625 .21435 .20322 .19281 .18305 .17391 .1653445............................................................ .27665 .26196 .24821 .23534 .22328 .21198 .20139 .19145 .18213 .1733846............................................................ .28644 .27163 .25774 .24472 .23251 .22105 .21028 .20018 .19068 .1817447............................................................ .29647 .28155 .26754 .25438 .24201 .23040 .21947 .20919 .19952 .1904148............................................................ .30676 .29173 .27760 .26431 .25181 .24004 .22896 .21852 .20868 .1994149............................................................ .31729 .30217 .28794 .27453 .26190 .24999 .23876 .22817 .21817 .2087350............................................................ .32808 .31289 .29856 .28505 .27229 .26026 .24889 .23814 .22799 .2183951............................................................ .33912 .32387 .30946 .29585 .28299 .27083 .25933 .24845 .23815 .2284052............................................................ .35038 .33507 .32060 .30691 .29395 .28168 .27005 .25904 .24861 .2387253............................................................ .36185 .34651 .33198 .31821 .30517 .29280 .28106 .26993 .25937 .2493454............................................................ .37352 .35815 .34358 .32976 .31664 .30418 .29234 .28110 .27042 .2602655............................................................ .38539 .37002 .35542 .34155 .32836 .31583 .30390 .29256 .28177 .2714956............................................................ .39746 .38209 .36748 .35358 .34034 .32774 .31574 .30431 .29342 .2830357............................................................ .40971 .39437 .37976 .36584 .35257 .33992 .32785 .31634 .30536 .2948858............................................................ .42212 .40682 .39222 .37829 .36500 .35231 .34019 .32862 .31756 .3069959............................................................ .43464 .41939 .40482 .39090 .37759 .36488 .35272 .34109 .32996 .3193260............................................................ .44726 .43207 .41754 .40364 .39034 .37761 .36542 .35375 .34257 .3318661............................................................ .45999 .44488 .43041 .41655 .40326 .39053 .37833 .36662 .35540 .3446362............................................................ .47286 .45785 .44345 .42964 .41639 .40367 .39146 .37974 .36848 .3576763............................................................ .48589 .47098 .45667 .44293 .42972 .41703 .40484 .39311 .38184 .3710064............................................................ .49903 .48426 .47005 .45638 .44324 .43060 .41843 .40671 .39544 .3845865............................................................ .51229 .49766 .48357 .47001 .45694 .44435 .43223 .42054 .40927 .3984166............................................................ .52568 .51121 .49726 .48381 .47084 .45833 .44626 .43461 .42337 .4125267............................................................ .53924 .52495 .51115 .49784 .48498 .47256 .46056 .44898 .43778 .4269668............................................................ .55293 .53883 .52521 .51205 .49932 .48701 .47511 .46360 .45246 .4416969............................................................ .56671 .55283 .53940 .52640 .51382 .50165 .48985 .47844 .46738 .4566670............................................................ .58052 .56687 .55365 .54084 .52843 .51639 .50473 .49342 .48245 .4718171............................................................ .59431 .58091 .56791 .55529 .54306 .53118 .51966 .50847 .49761 .4870772............................................................ .60804 .59490 .58213 .56973 .55768 .54598 .53461 .52357 .51283 .5023973............................................................ .62168 .60881 .59629 .58411 .57227 .56076 .54955 .53866 .52806 .5177474............................................................ .63528 .62268 .61042 .59848 .58686 .57555 .56453 .55380 .54335 .5331675............................................................ .64887 .63657 .62458 .61290 .60151 .59041 .57959 .56904 .55875 .5487276............................................................ .66249 .65049 .63880 .62739 .61625 .60538 .59478 .58443 .57432 .5644677............................................................ .67612 .66446 .65307 .64194 .63108 .62046 .61009 .59995 .59005 .5803778............................................................ .68975 .67843 .66736 .65654 .64596 .63561 .62548 .61558 .60590 .5964379............................................................ .70330 .69233 .68160 .67109 .66081 .65074 .64088 .63123 .62178 .6125380............................................................ .71666 .70605 .69566 .68548 .67550 .66573 .65615 .64676 .63755 .6285381............................................................ .72975 .71950 .70946 .69961 .68995 .68047 .67117 .66205 .65310 .6443382............................................................ .74250 .73263 .72293 .71342 .70407 .69490 .68589 .67705 .66837 .6598483............................................................ .75493 .74542 .73608 .72690 .71788 .70902 .70031 .69175 .68333 .6750684............................................................ .76712 .75798 .74900 .74016 .73147 .72292 .71451 .70624 .69810 .6901085............................................................ .77913 .77037 .76175 .75326 .74491 .73668 .72859 .72061 .71276 .7050386............................................................ .79086 .78248 .77423 .76610 .75808 .75019 .74241 .73474 .72719 .7197487............................................................ .80218 .79418 .78628 .77850 .77083 .76326 .75580 .74844 .74118 .7340288............................................................ .81307 .80544 .79790 .79047 .78313 .77589 .76874 .76169 .75473 .7478689............................................................ .82355 .81628 .80909 .80200 .79500 .78808 .78125 .77450 .76783 .7612590............................................................ .83360 .82668 .81985 .81309 .80642 .79982 .79330 .78685 .78048 .7741891............................................................ .84308 .83650 .83000 .82357 .81721 .81092 .80470 .79855 .79246 .7864592............................................................ .85182 .84556 .83937 .83325 .82718 .82119 .81525 .80937 .80356 .7978093............................................................ .85985 .85390 .84800 .84215 .83637 .83064 .82497 .81936 .81379 .8082994............................................................ .86732 .86164 .85601 .85044 .84491 .83944 .83402 .82865 .82333 .8180695............................................................ .87437 .86895 .86359 .85827 .85300 .84778 .84260 .83746 .83237 .8273396............................................................ .88097 .87582 .87070 .86563 .86060 .85561 .85066 .84575 .84088 .8360597............................................................ .88708 .88216 .87727 .87243 .86762 .86285 .85811 .85341 .84875 .8441398............................................................ .89280 .88810 .88343 .87880 .87420 .86964 .86511 .86061 .85614 .8517199............................................................ .89836 .89388 .88943 .88501 .88062 .87626 .87193 .86763 .86336 .85911100........................................................... .90375 .89948 .89525 .89103 .88685 .88269 .87856 .87445 .87037 .86632101........................................................... .90905 .90500 .90097 .89696 .89298 .88902 .88509 .88118 .87729 .87342102........................................................... .91424 .91040 .90658 .90278 .89900 .89524 .89150 .88778 .88408 .88040103........................................................... .91939 .91575 .91214 .90854 .90496 .90139 .89785 .89432 .89081 .88732104........................................................... .92485 .92144 .91805 .91467 .91131 .90796 .90463 .90131 .89800 .89471105........................................................... .93020 .92701 .92383 .92067 .91751 .91437 .91125 .90813 .90502 .90193
106........................................................... .93701 .93411 .93122 .92834 .92546 .92260 .91974 .91689 .91405 .91122107........................................................... .94522 .94268 .94013 .93760 .93507 .93254 .93002 .92750 .92499 .92249108........................................................... .95782 .95583 .95385 .95187 .94989 .94791 .94593 .94396 .94199 .94002109........................................................... .97900 .97800 .97700 .97600 .97500 .97400 .97300 .97200 .97100 .97000--------------------------------------------------------------------------------------------------------------------------------------------------------
Table U(1)--Based on Life Table 90CM Unitrust Single Life Remainder Factors
[Applicable After April 30, 1999, and Before May 1, 2009]--------------------------------------------------------------------------------------------------------------------------------------------------------
Interest rate
Age -----------------------------------------------------------------------------------------
6.2% 6.4% 6.6% 6.8% 7.0% 7.2% 7.4% 7.6% 7.8% 8.0%--------------------------------------------------------------------------------------------------------------------------------------------------------0............................................................. .02693 .02534 .02395 .02271 .02161 .02063 .01976 .01898 .01828 .017651............................................................. .01922 .01756 .01610 .01480 .01365 .01263 .01171 .01090 .01017 .009512............................................................. .01975 .01802 .01650 .01514 .01393 .01286 .01190 .01104 .01028 .009593............................................................. .02056 .01876 .01717 .01575 .01449 .01336 .01235 .01145 .01064 .009924............................................................. .02155 .01967 .01800 .01652 .01520 .01401 .01296 .01201 .01116 .010395............................................................. .02266 .02071 .01896 .01741 .01603 .01479 .01368 .01269 .01179 .010986............................................................. .02389 .02184 .02003 .01841 .01696 .01566 .01450 .01345 .01251 .011667............................................................. .02522 .02309 .02120 .01950 .01799 .01663 .01540 .01431 .01332 .012428............................................................. .02665 .02444 .02246 .02069 .01910 .01768 .01640 .01524 .01420 .013269............................................................. .02821 .02590 .02384 .02199 .02033 .01884 .01750 .01629 .01520 .0142110............................................................ .02990 .02750 .02535 .02342 .02169 .02013 .01872 .01745 .01631 .0152611............................................................ .03172 .02922 .02698 .02497 .02316 .02153 .02006 .01872 .01752 .0164312............................................................ .03365 .03106 .02872 .02663 .02474 .02303 .02149 .02010 .01884 .0176913............................................................ .03566 .03297 .03054 .02835 .02638 .02460 .02299 .02154 .02021 .0190114............................................................ .03770 .03490 .03237 .03010 .02804 .02619 .02450 .02298 .02159 .0203315............................................................ .03973 .03682 .03419 .03182 .02968 .02775 .02599 .02439 .02294 .0216216............................................................ .04173 .03871 .03598 .03352 .03129 .02926 .02743 .02576 .02424 .0228617............................................................ .04372 .04059 .03775 .03519 .03287 .03076 .02884 .02710 .02551 .0240618............................................................ .04573 .04248 .03953 .03686 .03444 .03224 .03024 .02842 .02676 .0252419............................................................ .04780 .04443 .04137 .03859 .03607 .03378 .03169 .02978 .02804 .0264620............................................................ .04997 .04647 .04329 .04040 .03778 .03539 .03321 .03122 .02940 .0277321............................................................ .05226 .04862 .04532 .04232 .03958 .03709 .03481 .03274 .03083 .0290922............................................................ .05465 .05088 .04745 .04432 .04148 .03888 .03650 .03433 .03234 .0305223............................................................ .05716 .05325 .04969 .04645 .04348 .04077 .03830 .03603 .03394 .0320324............................................................ .05983 .05578 .05208 .04871 .04562 .04280 .04021 .03784 .03566 .0336725............................................................ .06266 .05846 .05463 .05112 .04791 .04497 .04227 .03980 .03752 .0354326............................................................ .06566 .06131 .05734 .05369 .05035 .04729 .04448 .04189 .03951 .0373227............................................................ .06887 .06436 .06024 .05646 .05298 .04979 .04686 .04416 .04168 .0393928............................................................ .07225 .06758 .06331 .05938 .05577 .05245 .04940 .04658 .04398 .0415929............................................................ .07581 .07099 .06656 .06248 .05873 .05528 .05210 .04916 .04645 .0439430............................................................ .07956 .07457 .06998 .06575 .06186 .05827 .05495 .05189 .04906 .0464431............................................................ .08348 .07833 .07358 .06920 .06515 .06142 .05797 .05478 .05182 .0490832............................................................ .08761 .08228 .07736 .07282 .06863 .06475 .06116 .05783 .05475 .0518933............................................................ .09195 .08645 .08136 .07666 .07231 .06828 .06454 .06108 .05786 .0548834............................................................ .09651 .09082 .08557 .08070 .07619 .07200 .06812 .06452 .06117 .0580535............................................................ .10131 .09545 .09002 .08498 .08030 .07596 .07193 .06818 .06469 .0614436............................................................ .10635 .10031 .09470 .08949 .08465 .08015 .07596 .07206 .06842 .0650337............................................................ .11165 .10542 .09963 .09424 .08923 .08457 .08022 .07617 .07238 .0688538............................................................ .11722 .11081 .10484 .09927 .09409 .08926 .08475 .08054 .07661 .0729339............................................................ .12308 .11648 .11032 .10458 .09922 .09422 .08955 .08518 .08109 .0772640............................................................ .12925 .12246 .11612 .11020 .10466 .09949 .09465 .09011 .08587 .0818941............................................................ .13575 .12877 .12225 .11614 .11043 .10508 .10007 .09537 .09097 .0868342............................................................ .14259 .13542 .12871 .12243 .11654 .11101 .10583 .10097 .09640 .0921043............................................................ .14977 .14242 .13552 .12905 .12298 .11729 .11193 .10690 .10217 .0977144............................................................ .15731 .14976 .14269 .13604 .12979 .12391 .11838 .11318 .10828 .1036745............................................................ .16516 .15743 .15017 .14334 .13691 .13086 .12516 .11979 .11472 .1099446............................................................ .17334 .16544 .15800 .15099 .14438 .13816 .13228 .12674 .12150 .1165647............................................................ .18184 .17375 .16613 .15895 .15217 .14576 .13972 .13400 .12860 .1234948............................................................ .19066 .18240 .17461 .16724 .16029 .15371 .14749 .14161 .13604 .1307749............................................................ .19981 .19138 .18342 .17588 .16875 .16201 .15562 .14956 .14383 .1383950............................................................ .20931 .20072 .19259 .18489 .17759 .17067 .16412 .15790 .15199 .1463951............................................................ .21917 .21042 .20212 .19426 .18679 .17971 .17299 .16660 .16054 .1547752............................................................ .22933 .22043 .21198 .20395 .19633 .18909 .18220 .17566 .16943 .1635053............................................................ .23981 .23076 .22216 .21399 .20621 .19881 .19176 .18506 .17867 .1725854............................................................ .25060 .24141 .23267 .22434 .21642 .20886 .20166 .19480 .18826 .18201
55............................................................ .26171 .25239 .24351 .23504 .22697 .21927 .21192 .20491 .19821 .1918256............................................................ .27313 .26369 .25468 .24608 .23787 .23003 .22254 .21538 .20854 .2019957............................................................ .28487 .27531 .26618 .25746 .24912 .24114 .23351 .22621 .21923 .2125458............................................................ .29688 .28722 .27798 .26914 .26067 .25257 .24481 .23738 .23025 .2234359............................................................ .30913 .29937 .29002 .28107 .27249 .26427 .25639 .24882 .24157 .2346160............................................................ .32159 .31175 .30231 .29325 .28457 .27623 .26823 .26055 .25317 .2460861............................................................ .33429 .32437 .31485 .30571 .29692 .28848 .28037 .27257 .26507 .2578662............................................................ .34728 .33730 .32770 .31847 .30960 .30106 .29285 .28495 .27734 .2700163............................................................ .36057 .35053 .34087 .33157 .32262 .31400 .30569 .29769 .28998 .2825564............................................................ .37412 .36404 .35433 .34498 .33596 .32726 .31887 .31078 .30298 .2954565............................................................ .38794 .37783 .36809 .35868 .34961 .34085 .33239 .32422 .31633 .3087166............................................................ .40205 .39193 .38216 .37272 .36361 .35479 .34628 .33804 .33008 .3223867............................................................ .41650 .40639 .39661 .38715 .37800 .36915 .36059 .35230 .34428 .3365168............................................................ .43126 .42117 .41139 .40193 .39277 .38390 .37530 .36697 .35890 .3510869............................................................ .44628 .43622 .42648 .41703 .40787 .39898 .39037 .38201 .37391 .3660470............................................................ .46150 .45149 .44178 .43236 .42321 .41433 .40571 .39735 .38922 .3813271............................................................ .47683 .46689 .45723 .44785 .43873 .42987 .42126 .41290 .40476 .3968572............................................................ .49225 .48238 .47279 .46346 .45439 .44556 .43697 .42862 .42048 .4125773............................................................ .50770 .49793 .48841 .47915 .47013 .46135 .45280 .44447 .43635 .4284474............................................................ .52324 .51358 .50416 .49498 .48603 .47731 .46880 .46051 .45242 .4445475............................................................ .53894 .52939 .52008 .51100 .50214 .49349 .48505 .47681 .46877 .4609276............................................................ .55483 .54543 .53624 .52728 .51852 .50996 .50160 .49344 .48546 .4776677............................................................ .57091 .56167 .55263 .54380 .53516 .52671 .51845 .51038 .50247 .4947578............................................................ .58716 .57809 .56922 .56053 .55203 .54372 .53557 .52760 .51980 .5121679............................................................ .60346 .59459 .58590 .57738 .56904 .56086 .55286 .54501 .53732 .5297880............................................................ .61969 .61102 .60252 .59419 .58601 .57800 .57014 .56243 .55487 .5474581............................................................ .63571 .62726 .61897 .61082 .60283 .59499 .58729 .57974 .57232 .5650382............................................................ .65146 .64324 .63515 .62722 .61942 .61176 .60423 .59683 .58957 .5824283............................................................ .66693 .65893 .65108 .64335 .63575 .62828 .62093 .61371 .60660 .5996284............................................................ .68222 .67447 .66684 .65934 .65195 .64468 .63753 .63049 .62356 .6167485............................................................ .69742 .68993 .68255 .67528 .66812 .66106 .65411 .64727 .64053 .6338986............................................................ .71241 .70517 .69805 .69102 .68410 .67727 .67054 .66390 .65736 .6509187............................................................ .72696 .72000 .71313 .70635 .69967 .69307 .68656 .68014 .67381 .6675688............................................................ .74108 .73438 .72777 .72125 .71480 .70845 .70217 .69597 .68985 .6838089............................................................ .75475 .74832 .74198 .73571 .72951 .72339 .71734 .71137 .70547 .6996390............................................................ .76796 .76180 .75572 .74971 .74376 .73788 .73207 .72633 .72065 .7150391............................................................ .78049 .77460 .76878 .76302 .75732 .75168 .74610 .74058 .73512 .7297292............................................................ .79211 .78647 .78089 .77537 .76990 .76449 .75913 .75383 .74858 .7433893............................................................ .80283 .79743 .79208 .78679 .78154 .77634 .77119 .76610 .76105 .7560494............................................................ .81283 .80765 .80253 .79744 .79240 .78741 .78247 .77756 .77270 .7678995............................................................ .82233 .81737 .81245 .80757 .80274 .79795 .79320 .78849 .78382 .7791896............................................................ .83126 .82651 .82180 .81712 .81248 .80788 .80332 .79880 .79431 .7898597............................................................ .83953 .83498 .83046 .82597 .82152 .81710 .81271 .80836 .80404 .7997698............................................................ .84731 .84294 .83860 .83429 .83002 .82577 .82155 .81737 .81321 .8090899............................................................ .85490 .85071 .84656 .84243 .83832 .83425 .83020 .82618 .82219 .81822100........................................................... .86229 .85828 .85431 .85035 .84642 .84252 .83864 .83478 .83095 .82714101........................................................... .86958 .86575 .86195 .85818 .85442 .85069 .84698 .84329 .83962 .83597102........................................................... .87674 .87310 .86947 .86587 .86229 .85873 .85518 .85166 .84815 .84466103........................................................... .88384 .88038 .87694 .87351 .87010 .86671 .86334 .85998 .85663 .85331104........................................................... .89143 .88817 .88492 .88169 .87847 .87526 .87207 .86889 .86573 .86258105........................................................... .89885 .89578 .89272 .88967 .88664 .88361 .88060 .87760 .87461 .87163106........................................................... .90840 .90559 .90278 .89999 .89720 .89442 .89165 .88888 .88613 .88338107........................................................... .91999 .91750 .91501 .91253 .91005 .90758 .90511 .90265 .90019 .89774108........................................................... .93805 .93609 .93412 .93216 .93020 .92824 .92629 .92434 .92239 .92044109........................................................... .96900 .96800 .96700 .96600 .96500 .96400 .96300 .96200 .96100 .96000--------------------------------------------------------------------------------------------------------------------------------------------------------
Table U(1)--Based on Life Table 90CM Unitrust Single Life Remainder Factors
[Applicable After April 30, 1999, and Before May 1, 2009]--------------------------------------------------------------------------------------------------------------------------------------------------------
Interest rate
Age -----------------------------------------------------------------------------------------
8.2% 8.4% 8.6% 8.8% 9.0% 9.2% 9.4% 9.6% 9.8% 10.0%--------------------------------------------------------------------------------------------------------------------------------------------------------0............................................................. .01709 .01658 .01612 .01570 .01532 .01497 .01466 .01437 .01410 .013861............................................................. .00892 .00839 .00791 .00747 .00708 .00672 .00639 .00609 .00582 .005572............................................................. .00896 .00840 .00790 .00744 .00702 .00664 .00629 .00598 .00569 .005423............................................................. .00926 .00867 .00814 .00765 .00721 .00681 .00644 .00611 .00580 .00552
4............................................................. .00970 .00908 .00851 .00800 .00753 .00711 .00672 .00636 .00604 .005745............................................................. .01026 .00960 .00900 .00846 .00796 .00751 .00710 .00672 .00637 .006066............................................................. .01089 .01019 .00956 .00899 .00846 .00799 .00755 .00715 .00678 .006447............................................................. .01161 .01088 .01021 .00960 .00905 .00854 .00808 .00765 .00726 .006908............................................................. .01241 .01163 .01093 .01029 .00970 .00917 .00867 .00822 .00781 .007439............................................................. .01331 .01249 .01175 .01107 .01045 .00988 .00936 .00889 .00845 .0080410............................................................ .01432 .01346 .01268 .01196 .01131 .01071 .01016 .00965 .00918 .0087511............................................................ .01543 .01453 .01370 .01295 .01226 .01162 .01104 .01051 .01001 .0095612............................................................ .01664 .01569 .01482 .01403 .01330 .01263 .01202 .01145 .01093 .0104513............................................................ .01791 .01691 .01600 .01516 .01440 .01369 .01304 .01245 .01190 .0113914............................................................ .01918 .01813 .01717 .01629 .01548 .01474 .01406 .01343 .01285 .0123115............................................................ .02041 .01931 .01831 .01738 .01653 .01576 .01504 .01437 .01376 .0132016............................................................ .02160 .02044 .01938 .01841 .01752 .01670 .01595 .01525 .01460 .0140117............................................................ .02274 .02152 .02041 .01940 .01846 .01760 .01680 .01607 .01539 .0147618............................................................ .02386 .02258 .02142 .02035 .01936 .01846 .01762 .01685 .01613 .0154719............................................................ .02500 .02367 .02245 .02132 .02029 .01933 .01845 .01764 .01689 .0161920............................................................ .02621 .02481 .02353 .02235 .02126 .02025 .01933 .01847 .01768 .0169421............................................................ .02749 .02603 .02468 .02344 .02229 .02124 .02026 .01936 .01852 .0177422............................................................ .02884 .02730 .02589 .02458 .02338 .02227 .02124 .02029 .01940 .0185923............................................................ .03028 .02867 .02718 .02581 .02454 .02337 .02229 .02128 .02035 .0194924............................................................ .03183 .03013 .02857 .02713 .02580 .02456 .02342 .02236 .02138 .0204725............................................................ .03350 .03172 .03008 .02857 .02717 .02587 .02467 .02355 .02251 .0215526............................................................ .03530 .03344 .03172 .03013 .02865 .02729 .02602 .02484 .02375 .0227327............................................................ .03727 .03532 .03351 .03183 .03028 .02885 .02751 .02627 .02511 .0240428............................................................ .03937 .03732 .03543 .03367 .03204 .03052 .02911 .02780 .02658 .0254529............................................................ .04162 .03947 .03748 .03564 .03392 .03233 .03084 .02946 .02818 .0269830............................................................ .04401 .04176 .03967 .03773 .03593 .03425 .03269 .03124 .02988 .0286131............................................................ .04654 .04419 .04200 .03996 .03807 .03630 .03466 .03312 .03169 .0303532............................................................ .04923 .04676 .04447 .04233 .04034 .03849 .03676 .03514 .03363 .0322133............................................................ .05210 .04952 .04711 .04487 .04278 .04083 .03901 .03731 .03571 .0342234............................................................ .05515 .05245 .04993 .04758 .04538 .04333 .04142 .03962 .03794 .0363735............................................................ .05841 .05558 .05295 .05048 .04818 .04603 .04401 .04212 .04035 .0386936............................................................ .06187 .05892 .05616 .05358 .05116 .04890 .04678 .04480 .04293 .0411837............................................................ .06555 .06247 .05958 .05688 .05435 .05198 .04975 .04766 .04570 .0438538............................................................ .06949 .06627 .06325 .06043 .05777 .05528 .05295 .05075 .04868 .0467439............................................................ .07368 .07032 .06717 .06421 .06143 .05882 .05637 .05406 .05189 .0498440............................................................ .07816 .07465 .07137 .06827 .06537 .06263 .06006 .05764 .05535 .0532041............................................................ .08295 .07930 .07587 .07264 .06960 .06674 .06405 .06150 .05910 .0568342............................................................ .08807 .08427 .08069 .07733 .07415 .07116 .06833 .06567 .06315 .0607743............................................................ .09352 .08957 .08585 .08233 .07902 .07589 .07294 .07014 .06750 .0650044............................................................ .09932 .09521 .09134 .08768 .08423 .08096 .07787 .07495 .07218 .0695645............................................................ .10543 .10117 .09715 .09334 .08974 .08634 .08311 .08005 .07716 .0744146............................................................ .11189 .10747 .10329 .09933 .09559 .09204 .08867 .08548 .08245 .0795847............................................................ .11866 .11408 .10974 .10564 .10174 .09805 .09454 .09121 .08805 .0850448............................................................ .12577 .12103 .11654 .11228 .10823 .10439 .10074 .09727 .09397 .0908349............................................................ .13323 .12833 .12368 .11926 .11506 .11107 .10728 .10366 .10022 .0969550............................................................ .14107 .13601 .13120 .12663 .12228 .11813 .11419 .11043 .10685 .1034451............................................................ .14928 .14407 .13910 .13437 .12987 .12558 .12149 .11758 .11386 .1103152............................................................ .15785 .15248 .14735 .14247 .13781 .13337 .12913 .12508 .12122 .1175253............................................................ .16678 .16124 .15597 .15093 .14612 .14153 .13714 .13294 .12893 .1250954............................................................ .17606 .17037 .16493 .15974 .15478 .15004 .14550 .14116 .13700 .1330255............................................................ .18570 .17986 .17428 .16893 .16382 .15893 .15424 .14976 .14546 .1413456............................................................ .19573 .18974 .18400 .17851 .17325 .16821 .16338 .15875 .15430 .1500457............................................................ .20613 .20000 .19412 .18848 .18307 .17789 .17291 .16814 .16355 .1591458............................................................ .21688 .21060 .20458 .19880 .19325 .18792 .18280 .17788 .17316 .1686159............................................................ .22793 .22151 .21535 .20943 .20374 .19827 .19301 .18795 .18309 .1784060............................................................ .23927 .23272 .22642 .22036 .21454 .20893 .20354 .19834 .19334 .1885161............................................................ .25092 .24425 .23782 .23163 .22567 .21993 .21440 .20907 .20393 .1989862............................................................ .26295 .25616 .24961 .24329 .23721 .23134 .22568 .22021 .21494 .2098563............................................................ .27538 .26847 .26180 .25537 .24916 .24316 .23738 .23179 .22639 .2211764............................................................ .28817 .28116 .27438 .26783 .26150 .25539 .24949 .24377 .23825 .2329165............................................................ .30134 .29423 .28735 .28069 .27426 .26803 .26201 .25618 .25054 .2450866............................................................ .31493 .30772 .30075 .29399 .28746 .28113 .27500 .26906 .26331 .2577467............................................................ .32899 .32170 .31464 .30780 .30118 .29475 .28852 .28248 .27663 .2709568............................................................ .34349 .33614 .32901 .32209 .31538 .30887 .30256 .29643 .29047 .2846969............................................................ .35841 .35100 .34381 .33683 .33005 .32346 .31707 .31085 .30481 .2989470............................................................ .37366 .36620 .35896 .35193 .34509 .33844 .33197 .32568 .31957 .3136271............................................................ .38916 .38167 .37440 .36732 .36043 .35372 .34720 .34084 .33466 .32864
72............................................................ .40486 .39736 .39006 .38295 .37602 .36927 .36270 .35629 .35005 .3439673............................................................ .42074 .41323 .40591 .39878 .39182 .38504 .37843 .37198 .36568 .3595574............................................................ .43685 .42934 .42202 .41488 .40791 .40110 .39446 .38798 .38165 .3754775............................................................ .45326 .44577 .43846 .43132 .42435 .41754 .41088 .40438 .39802 .3918176............................................................ .47004 .46259 .45530 .44818 .44122 .43442 .42776 .42125 .41488 .4086577............................................................ .48718 .47979 .47255 .46547 .45853 .45175 .44511 .43861 .43225 .4260178............................................................ .50467 .49735 .49017 .48314 .47626 .46951 .46290 .45643 .45008 .4438679............................................................ .52239 .51515 .50806 .50110 .49427 .48758 .48102 .47459 .46828 .4620980............................................................ .54018 .53304 .52603 .51916 .51242 .50580 .49930 .49292 .48666 .4805281............................................................ .55788 .55085 .54396 .53718 .53053 .52399 .51757 .51126 .50507 .4989882............................................................ .57540 .56851 .56173 .55506 .54851 .54207 .53574 .52951 .52339 .5173783............................................................ .59274 .58598 .57933 .57279 .56635 .56001 .55378 .54765 .54161 .5356784............................................................ .61002 .60341 .59690 .59049 .58418 .57796 .57184 .56582 .55988 .5540385............................................................ .62734 .62090 .61454 .60828 .60211 .59603 .59004 .58414 .57832 .5725886............................................................ .64455 .63828 .63210 .62600 .61999 .61406 .60821 .60244 .59675 .5911387............................................................ .66139 .65531 .64930 .64337 .63752 .63175 .62605 .62043 .61488 .6093988............................................................ .67783 .67194 .66612 .66037 .65469 .64908 .64354 .63807 .63267 .6273389............................................................ .69387 .68817 .68254 .67698 .67148 .66605 .66068 .65537 .65012 .6449390............................................................ .70947 .70398 .69855 .69318 .68786 .68261 .67742 .67228 .66719 .6621791............................................................ .72437 .71908 .71385 .70867 .70354 .69847 .69345 .68848 .68357 .6787092............................................................ .73823 .73314 .72810 .72310 .71816 .71326 .70841 .70361 .69886 .6941593............................................................ .75109 .74618 .74132 .73650 .73173 .72700 .72232 .71768 .71308 .7085294............................................................ .76312 .75839 .75370 .74905 .74445 .73988 .73536 .73087 .72643 .7220295............................................................ .77459 .77004 .76552 .76104 .75660 .75220 .74783 .74350 .73920 .7349496............................................................ .78543 .78105 .77670 .77238 .76810 .76386 .75964 .75546 .75131 .7472097............................................................ .79550 .79128 .78709 .78293 .77880 .77470 .77063 .76659 .76258 .7586098............................................................ .80498 .80091 .79687 .79286 .78888 .78492 .78099 .77709 .77322 .7693799............................................................ .81428 .81036 .80647 .80261 .79877 .79496 .79117 .78741 .78367 .77995100........................................................... .82336 .81959 .81586 .81214 .80845 .80478 .80113 .79751 .79390 .79032101........................................................... .83234 .82873 .82515 .82158 .81804 .81451 .81101 .80753 .80406 .80062102........................................................... .84119 .83774 .83431 .83089 .82750 .82412 .82076 .81742 .81409 .81078103........................................................... .84999 .84670 .84342 .84016 .83691 .83368 .83046 .82726 .82408 .82091104........................................................... .85944 .85632 .85321 .85011 .84703 .84396 .84090 .83786 .83483 .83182105........................................................... .86866 .86570 .86276 .85982 .85690 .85399 .85109 .84820 .84532 .84245106........................................................... .88065 .87792 .87520 .87248 .86978 .86708 .86440 .86172 .85905 .85638107........................................................... .89530 .89286 .89042 .88799 .88557 .88315 .88073 .87833 .87592 .87352108........................................................... .91849 .91654 .91460 .91266 .91072 .90879 .90685 .90492 .90299 .90106109........................................................... .95900 .95800 .95700 .95600 .95500 .95400 .95300 .95200 .95100 .95000--------------------------------------------------------------------------------------------------------------------------------------------------------
Table U(1)--Based on Life Table 90CM Unitrust Single Life Remainder Factors
[Applicable After April 30, 1999, and Before May 1, 2009]--------------------------------------------------------------------------------------------------------------------------------------------------------
Interest rate
Age -----------------------------------------------------------------------------------------
10.2% 10.4% 10.6% 10.8% 11.0% 11.2% 11.4% 11.6% 11.8% 12.0%--------------------------------------------------------------------------------------------------------------------------------------------------------0............................................................. .01363 .01342 .01323 .01305 .01288 .01272 .01258 .01244 .01231 .012191............................................................. .00534 .00512 .00493 .00474 .00458 .00442 .00427 .00414 .00401 .003892............................................................. .00518 .00495 .00474 .00455 .00437 .00421 .00405 .00391 .00377 .003653............................................................. .00526 .00502 .00480 .00459 .00440 .00422 .00406 .00391 .00376 .003634............................................................. .00546 .00521 .00497 .00475 .00455 .00436 .00419 .00402 .00387 .003735............................................................. .00576 .00549 .00524 .00501 .00479 .00459 .00440 .00423 .00406 .003916............................................................. .00613 .00584 .00557 .00532 .00509 .00488 .00468 .00449 .00432 .004157............................................................. .00657 .00626 .00598 .00571 .00547 .00524 .00502 .00482 .00464 .004468............................................................. .00707 .00675 .00644 .00616 .00590 .00565 .00542 .00521 .00501 .004829............................................................. .00766 .00732 .00699 .00669 .00641 .00615 .00591 .00568 .00547 .0052710............................................................ .00835 .00798 .00764 .00732 .00702 .00675 .00649 .00624 .00602 .0058011............................................................ .00913 .00874 .00838 .00804 .00772 .00743 .00715 .00689 .00665 .0064212............................................................ .01000 .00959 .00920 .00884 .00851 .00819 .00790 .00762 .00737 .0071213............................................................ .01091 .01048 .01007 .00969 .00933 .00900 .00869 .00840 .00813 .0078714............................................................ .01181 .01135 .01092 .01052 .01014 .00979 .00947 .00916 .00887 .0086015............................................................ .01267 .01218 .01173 .01130 .01091 .01054 .01019 .00987 .00956 .0092816............................................................ .01345 .01294 .01246 .01201 .01160 .01121 .01084 .01050 .01018 .0098817............................................................ .01418 .01364 .01313 .01266 .01222 .01181 .01143 .01107 .01073 .0104118............................................................ .01486 .01429 .01375 .01326 .01279 .01236 .01196 .01158 .01122 .0108819............................................................ .01554 .01494 .01438 .01385 .01336 .01291 .01248 .01208 .01170 .0113520............................................................ .01626 .01562 .01503 .01448 .01396 .01348 .01303 .01260 .01220 .01183
21............................................................ .01702 .01635 .01573 .01514 .01460 .01409 .01361 .01316 .01274 .0123522............................................................ .01782 .01711 .01645 .01584 .01526 .01472 .01422 .01374 .01330 .0128823............................................................ .01868 .01793 .01724 .01658 .01597 .01540 .01487 .01437 .01390 .0134524............................................................ .01962 .01883 .01809 .01740 .01675 .01615 .01558 .01505 .01455 .0140825............................................................ .02065 .01981 .01903 .01830 .01762 .01698 .01638 .01581 .01528 .0147826............................................................ .02178 .02089 .02006 .01929 .01856 .01789 .01725 .01665 .01609 .0155627............................................................ .02303 .02209 .02122 .02040 .01963 .01891 .01824 .01760 .01700 .0164428............................................................ .02439 .02339 .02247 .02160 .02079 .02002 .01931 .01863 .01800 .0174029............................................................ .02585 .02480 .02382 .02290 .02204 .02123 .02047 .01976 .01908 .0184530............................................................ .02742 .02631 .02527 .02430 .02339 .02253 .02172 .02096 .02025 .0195731............................................................ .02910 .02793 .02683 .02579 .02482 .02391 .02306 .02225 .02149 .0207732............................................................ .03089 .02965 .02849 .02739 .02636 .02540 .02449 .02363 .02282 .0220633............................................................ .03282 .03151 .03028 .02912 .02803 .02701 .02604 .02513 .02427 .0234634............................................................ .03489 .03350 .03220 .03097 .02982 .02873 .02771 .02674 .02583 .0249735............................................................ .03713 .03567 .03429 .03299 .03177 .03061 .02953 .02850 .02753 .0266136............................................................ .03953 .03798 .03653 .03515 .03386 .03263 .03148 .03039 .02936 .0283837............................................................ .04211 .04048 .03894 .03748 .03611 .03481 .03359 .03243 .03134 .0303038............................................................ .04490 .04318 .04155 .04001 .03856 .03719 .03589 .03466 .03350 .0323939............................................................ .04791 .04609 .04437 .04274 .04120 .03975 .03837 .03707 .03583 .0346640............................................................ .05116 .04924 .04742 .04571 .04408 .04254 .04108 .03970 .03839 .0371441............................................................ .05469 .05267 .05075 .04894 .04722 .04559 .04405 .04258 .04119 .0398742............................................................ .05851 .05638 .05436 .05245 .05063 .04891 .04728 .04573 .04425 .0428543............................................................ .06263 .06039 .05827 .05625 .05433 .05252 .05079 .04915 .04759 .0461044............................................................ .06707 .06472 .06248 .06035 .05834 .05642 .05459 .05286 .05121 .0496345............................................................ .07180 .06933 .06698 .06474 .06262 .06059 .05867 .05684 .05509 .0534246............................................................ .07685 .07425 .07178 .06943 .06720 .06507 .06304 .06110 .05926 .0575047............................................................ .08218 .07946 .07687 .07440 .07205 .06981 .06768 .06564 .06369 .0618348............................................................ .08784 .08499 .08228 .07969 .07722 .07487 .07262 .07047 .06842 .0664649............................................................ .09382 .09085 .08801 .08530 .08271 .08024 .07788 .07562 .07346 .0714050............................................................ .10018 .09707 .09410 .09127 .08856 .08597 .08349 .08112 .07885 .0766751............................................................ .10691 .10367 .10057 .09761 .09477 .09206 .08946 .08697 .08459 .0823152............................................................ .11399 .11061 .10738 .10429 .10132 .09849 .09577 .09316 .09066 .0882653............................................................ .12142 .11791 .11454 .11132 .10823 .10526 .10242 .09969 .09707 .0945654............................................................ .12921 .12556 .12206 .11870 .11548 .11239 .10942 .10657 .10383 .1012055............................................................ .13738 .13359 .12995 .12646 .12311 .11989 .11679 .11382 .11096 .1082056............................................................ .14595 .14202 .13824 .13462 .13113 .12778 .12456 .12146 .11847 .1156057............................................................ .15491 .15084 .14693 .14317 .13955 .13607 .13272 .12949 .12638 .1233858............................................................ .16424 .16004 .15599 .15209 .14834 .14473 .14125 .13789 .13465 .1315359............................................................ .17390 .16955 .16537 .16134 .15746 .15371 .15010 .14662 .14325 .1400160............................................................ .18387 .17939 .17507 .17091 .16689 .16302 .15927 .15566 .15217 .1488061............................................................ .19420 .18958 .18513 .18084 .17669 .17268 .16881 .16506 .16145 .1579562............................................................ .20494 .20020 .19561 .19119 .18691 .18277 .17877 .17490 .17115 .1675363............................................................ .21613 .21126 .20654 .20199 .19758 .19331 .18918 .18518 .18131 .1775764............................................................ .22774 .22274 .21791 .21322 .20869 .20429 .20004 .19592 .19192 .1880565............................................................ .23979 .23467 .22971 .22490 .22025 .21573 .21135 .20710 .20299 .1989966............................................................ .25233 .24709 .24202 .23709 .23231 .22767 .22318 .21881 .21457 .2104567............................................................ .26543 .26009 .25489 .24985 .24496 .24021 .23560 .23111 .22676 .2225268............................................................ .27908 .27363 .26833 .26319 .25819 .25332 .24860 .24400 .23954 .2351969............................................................ .29324 .28769 .28230 .27705 .27195 .26699 .26216 .25746 .25288 .2484370............................................................ .30783 .30219 .29671 .29137 .28618 .28112 .27619 .27139 .26672 .2621671............................................................ .32277 .31706 .31150 .30608 .30079 .29564 .29063 .28573 .28096 .2763172............................................................ .33803 .33225 .32661 .32112 .31575 .31052 .30542 .30044 .29559 .2908473............................................................ .35356 .34772 .34201 .33645 .33101 .32571 .32053 .31547 .31053 .3057174............................................................ .36943 .36354 .35778 .35215 .34666 .34129 .33604 .33091 .32590 .3210075............................................................ .38574 .37980 .37400 .36833 .36278 .35735 .35205 .34686 .34178 .3368176............................................................ .40256 .39660 .39076 .38505 .37947 .37400 .36864 .36340 .35827 .3532477............................................................ .41991 .41394 .40808 .40235 .39674 .39124 .38585 .38056 .37539 .3703278............................................................ .43777 .43180 .42594 .42020 .41457 .40906 .40365 .39834 .39314 .3880379............................................................ .45602 .45007 .44422 .43849 .43287 .42735 .42193 .41661 .41139 .4062780............................................................ .47449 .46856 .46275 .45704 .45143 .44592 .44051 .43519 .42997 .4248481............................................................ .49300 .48712 .48134 .47566 .47008 .46460 .45921 .45391 .44870 .4435782............................................................ .51145 .50563 .49990 .49427 .48873 .48328 .47792 .47265 .46746 .4623583............................................................ .52983 .52407 .51841 .51284 .50735 .50195 .49663 .49139 .48624 .4811684............................................................ .54828 .54261 .53702 .53151 .52609 .52075 .51549 .51030 .50519 .5001585............................................................ .56693 .56135 .55586 .55044 .54510 .53983 .53464 .52952 .52447 .5194986............................................................ .58560 .58013 .57474 .56943 .56418 .55901 .55390 .54886 .54389 .5389887............................................................ .60398 .59864 .59337 .58817 .58303 .57795 .57294 .56799 .56310 .5582888............................................................ .62206 .61685 .61170 .60662 .60159 .59663 .59173 .58688 .58209 .57736
89............................................................ .63980 .63474 .62972 .62477 .61987 .61503 .61024 .60551 .60083 .5962090............................................................ .65719 .65227 .64741 .64259 .63783 .63312 .62846 .62385 .61928 .6147791............................................................ .67388 .66912 .66440 .65973 .65511 .65053 .64600 .64152 .63708 .6326992............................................................ .68949 .68487 .68030 .67577 .67129 .66685 .66245 .65809 .65378 .6495093............................................................ .70401 .69954 .69511 .69072 .68637 .68205 .67778 .67355 .66935 .6651994............................................................ .71765 .71332 .70902 .70477 .70055 .69636 .69222 .68810 .68403 .6799895............................................................ .73072 .72653 .72237 .71825 .71416 .71010 .70608 .70209 .69813 .6942196............................................................ .74311 .73906 .73504 .73105 .72709 .72316 .71926 .71539 .71155 .7077497............................................................ .75465 .75073 .74684 .74297 .73914 .73533 .73155 .72780 .72407 .7203798............................................................ .76555 .76175 .75798 .75424 .75052 .74683 .74317 .73953 .73591 .7323299............................................................ .77626 .77260 .76895 .76534 .76174 .75817 .75462 .75109 .74759 .74411100........................................................... .78676 .78323 .77971 .77622 .77274 .76929 .76586 .76245 .75906 .75569101........................................................... .79719 .79379 .79040 .78703 .78368 .78035 .77704 .77375 .77048 .76722102........................................................... .80749 .80422 .80096 .79772 .79450 .79130 .78811 .78494 .78178 .77864103........................................................... .81775 .81461 .81149 .80838 .80529 .80221 .79914 .79609 .79306 .79003104........................................................... .82881 .82582 .82284 .81988 .81693 .81399 .81106 .80815 .80525 .80236105........................................................... .83959 .83674 .83391 .83108 .82826 .82546 .82267 .81988 .81711 .81435106........................................................... .85373 .85108 .84844 .84581 .84319 .84058 .83797 .83537 .83278 .83020107........................................................... .87113 .86875 .86636 .86399 .86161 .85925 .85689 .85453 .85218 .84984108........................................................... .89913 .89721 .89529 .89337 .89145 .88953 .88762 .88571 .88380 .88189109........................................................... .94900 .94800 .94700 .94600 .94500 .94400 .94300 .94200 .94100 .94000----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Table U(1)--Based on Life Table 90CM Unitrust Single Life Remainder Factors
[Applicable After April 30, 1999, and Before May 1, 2009]--------------------------------------------------------------------------------------------------------------------------------------------------------
Interest rate
Age -----------------------------------------------------------------------------------------
12.2% 12.4% 12.6% 12.8% 13.0% 13.2% 13.4% 13.6% 13.8% 14.0%--------------------------------------------------------------------------------------------------------------------------------------------------------0............................................................. .01208 .01197 .01187 .01177 .01168 .01159 .01151 .01143 .01135 .011281............................................................. .00378 .00367 .00358 .00348 .00340 .00331 .00323 .00316 .00309 .003022............................................................. .00353 .00342 .00331 .00322 .00312 .00304 .00295 .00288 .00280 .002733............................................................. .00350 .00339 .00327 .00317 .00307 .00298 .00289 .00281 .00273 .002654............................................................. .00359 .00347 .00335 .00324 .00313 .00303 .00294 .00285 .00276 .002685............................................................. .00377 .00363 .00351 .00339 .00327 .00317 .00306 .00297 .00288 .002796............................................................. .00400 .00386 .00372 .00359 .00347 .00335 .00325 .00314 .00305 .002957............................................................. .00430 .00414 .00400 .00386 .00373 .00360 .00349 .00338 .00327 .003178............................................................. .00465 .00448 .00432 .00417 .00403 .00390 .00378 .00366 .00354 .003449............................................................. .00508 .00490 .00473 .00457 .00442 .00428 .00414 .00402 .00389 .0037810............................................................ .00560 .00541 .00523 .00506 .00490 .00475 .00460 .00446 .00433 .0042111............................................................ .00620 .00600 .00581 .00563 .00546 .00529 .00514 .00499 .00485 .0047212............................................................ .00689 .00668 .00647 .00628 .00610 .00593 .00576 .00560 .00545 .0053113............................................................ .00763 .00740 .00718 .00698 .00678 .00660 .00642 .00626 .00610 .0059514............................................................ .00834 .00810 .00787 .00766 .00745 .00726 .00707 .00689 .00673 .0065715............................................................ .00901 .00875 .00851 .00828 .00807 .00786 .00767 .00748 .00730 .0071416............................................................ .00959 .00932 .00907 .00883 .00860 .00839 .00818 .00799 .00780 .0076217............................................................ .01011 .00983 .00956 .00930 .00907 .00884 .00862 .00842 .00822 .0080418............................................................ .01057 .01027 .00999 .00972 .00947 .00923 .00900 .00879 .00858 .0083919............................................................ .01101 .01070 .01040 .01012 .00985 .00960 .00936 .00914 .00892 .0087120............................................................ .01148 .01115 .01083 .01054 .01026 .00999 .00974 .00950 .00927 .0090521............................................................ .01197 .01162 .01129 .01098 .01068 .01040 .01014 .00988 .00964 .0094122............................................................ .01249 .01211 .01176 .01143 .01112 .01082 .01054 .01027 .01002 .0097823............................................................ .01304 .01264 .01227 .01192 .01159 .01127 .01098 .01069 .01042 .0101724............................................................ .01364 .01322 .01283 .01246 .01210 .01177 .01145 .01115 .01087 .0106025............................................................ .01431 .01387 .01345 .01306 .01268 .01233 .01199 .01168 .01137 .0110926............................................................ .01506 .01459 .01415 .01373 .01333 .01295 .01260 .01226 .01194 .0116327............................................................ .01591 .01541 .01494 .01449 .01407 .01367 .01329 .01293 .01259 .0122628............................................................ .01684 .01631 .01580 .01533 .01488 .01445 .01405 .01367 .01330 .0129629............................................................ .01785 .01728 .01675 .01624 .01577 .01531 .01488 .01447 .01408 .0137230............................................................ .01893 .01833 .01776 .01723 .01672 .01623 .01578 .01534 .01493 .0145331............................................................ .02010 .01946 .01885 .01828 .01773 .01722 .01673 .01627 .01582 .0154032............................................................ .02134 .02066 .02002 .01940 .01883 .01828 .01776 .01726 .01679 .0163433............................................................ .02270 .02197 .02128 .02063 .02002 .01943 .01887 .01835 .01784 .0173634............................................................ .02415 .02338 .02265 .02195 .02130 .02067 .02008 .01951 .01897 .0184635............................................................ .02574 .02492 .02414 .02340 .02270 .02203 .02140 .02080 .02022 .0196736............................................................ .02746 .02658 .02575 .02496 .02422 .02350 .02283 .02218 .02157 .02098
37............................................................ .02932 .02838 .02750 .02666 .02586 .02510 .02438 .02369 .02303 .0224138............................................................ .03135 .03035 .02941 .02851 .02766 .02685 .02608 .02534 .02464 .0239739............................................................ .03355 .03249 .03149 .03053 .02962 .02876 .02793 .02715 .02640 .0256840............................................................ .03596 .03484 .03377 .03275 .03178 .03086 .02998 .02914 .02833 .0275741............................................................ .03861 .03742 .03628 .03520 .03416 .03318 .03224 .03134 .03048 .0296642............................................................ .04152 .04025 .03903 .03788 .03678 .03573 .03473 .03377 .03285 .0319843............................................................ .04468 .04333 .04205 .04082 .03965 .03853 .03746 .03644 .03546 .0345344............................................................ .04813 .04670 .04533 .04403 .04278 .04159 .04045 .03936 .03832 .0373245............................................................ .05183 .05032 .04887 .04748 .04616 .04489 .04368 .04252 .04141 .0403446............................................................ .05582 .05421 .05267 .05121 .04980 .04846 .04717 .04593 .04475 .0436247............................................................ .06006 .05836 .05673 .05518 .05369 .05226 .05089 .04958 .04832 .0471148............................................................ .06459 .06279 .06107 .05943 .05785 .05634 .05488 .05349 .05216 .0508749............................................................ .06942 .06752 .06571 .06397 .06230 .06070 .05916 .05768 .05626 .0549050............................................................ .07459 .07259 .07068 .06884 .06708 .06538 .06376 .06219 .06069 .0592451............................................................ .08012 .07801 .07599 .07406 .07220 .07041 .06869 .06703 .06544 .0639152............................................................ .08596 .08375 .08163 .07959 .07763 .07574 .07392 .07218 .07049 .0688753............................................................ .09214 .08982 .08759 .08544 .08338 .08139 .07948 .07763 .07586 .0741554............................................................ .09867 .09623 .09389 .09164 .08946 .08737 .08536 .08342 .08154 .0797455............................................................ .10556 .10301 .10055 .09819 .09591 .09371 .09159 .08955 .08757 .0856756............................................................ .11283 .11016 .10759 .10511 .10272 .10042 .09819 .09605 .09397 .0919757............................................................ .12050 .11771 .11502 .11243 .10993 .10751 .10518 .10293 .10075 .0986458............................................................ .12852 .12562 .12281 .12011 .11749 .11496 .11252 .11016 .10787 .1056759............................................................ .13687 .13385 .13092 .12810 .12537 .12273 .12017 .11770 .11531 .1129960............................................................ .14554 .14240 .13935 .13641 .13356 .13080 .12813 .12555 .12305 .1206361............................................................ .15457 .15130 .14813 .14507 .14210 .13923 .13644 .13375 .13113 .1286062............................................................ .16402 .16063 .15734 .15415 .15107 .14808 .14518 .14237 .13964 .1369963............................................................ .17393 .17042 .16700 .16370 .16049 .15738 .15437 .15144 .14860 .1458464............................................................ .18429 .18065 .17712 .17369 .17036 .16714 .16400 .16096 .15800 .1551365............................................................ .19511 .19135 .18769 .18415 .18070 .17735 .17410 .17094 .16787 .1648866............................................................ .20645 .20257 .19880 .19513 .19157 .18810 .18473 .18146 .17827 .1751767............................................................ .21841 .21441 .21052 .20673 .20305 .19947 .19599 .19259 .18929 .1860868............................................................ .23096 .22685 .22284 .21895 .21515 .21146 .20786 .20436 .20094 .1976269............................................................ .24409 .23987 .23575 .23175 .22784 .22404 .22033 .21672 .21320 .2097670............................................................ .25772 .25339 .24918 .24507 .24106 .23715 .23333 .22961 .22598 .2224471............................................................ .27178 .26735 .26304 .25882 .25471 .25070 .24679 .24296 .23923 .2355972............................................................ .28622 .28170 .27729 .27298 .26877 .26467 .26065 .25673 .25290 .2491573............................................................ .30100 .29639 .29189 .28749 .28320 .27899 .27489 .27087 .26694 .2631074............................................................ .31621 .31152 .30694 .30246 .29807 .29378 .28959 .28548 .28146 .2775375............................................................ .33195 .32719 .32253 .31797 .31351 .30914 .30486 .30067 .29657 .2925576............................................................ .34832 .34350 .33877 .33415 .32961 .32517 .32082 .31656 .31238 .3082877............................................................ .36535 .36047 .35570 .35101 .34642 .34192 .33750 .33317 .32892 .3247578............................................................ .38302 .37811 .37329 .36856 .36392 .35937 .35490 .35051 .34621 .3419879............................................................ .40124 .39630 .39145 .38669 .38201 .37742 .37291 .36848 .36413 .3598580............................................................ .41980 .41485 .40998 .40520 .40050 .39588 .39134 .38688 .38249 .3781881............................................................ .43854 .43358 .42871 .42392 .41921 .41457 .41001 .40553 .40112 .3967882............................................................ .45733 .45238 .44752 .44273 .43802 .43338 .42881 .42431 .41989 .4155383............................................................ .47616 .47123 .46638 .46161 .45690 .45227 .44770 .44320 .43877 .4344184............................................................ .49519 .49030 .48548 .48073 .47604 .47143 .46688 .46239 .45797 .4536185............................................................ .51458 .50974 .50496 .50025 .49560 .49102 .48650 .48204 .47763 .4732986............................................................ .53413 .52935 .52463 .51998 .51538 .51084 .50636 .50194 .49758 .4932787............................................................ .55351 .54881 .54416 .53957 .53503 .53055 .52613 .52176 .51744 .5131788............................................................ .57268 .56806 .56349 .55898 .55451 .55010 .54574 .54144 .53718 .5329689............................................................ .59162 .58710 .58262 .57819 .57382 .56949 .56520 .56097 .55678 .5526390............................................................ .61030 .60588 .60151 .59718 .59290 .58866 .58447 .58032 .57621 .5721491............................................................ .62834 .62403 .61977 .61554 .61136 .60722 .60312 .59907 .59505 .5910792............................................................ .64527 .64107 .63692 .63280 .62872 .62468 .62068 .61672 .61279 .6089093............................................................ .66107 .65699 .65294 .64893 .64495 .64101 .63711 .63323 .62940 .6255994............................................................ .67597 .67200 .66806 .66415 .66027 .65643 .65262 .64884 .64509 .6413895............................................................ .69031 .68645 .68262 .67881 .67504 .67130 .66759 .66390 .66025 .6566296............................................................ .70396 .70021 .69648 .69279 .68912 .68548 .68186 .67828 .67471 .6711897............................................................ .71670 .71305 .70943 .70584 .70227 .69872 .69520 .69171 .68824 .6848098............................................................ .72875 .72521 .72169 .71819 .71472 .71127 .70784 .70444 .70106 .6977099............................................................ .74065 .73721 .73379 .73040 .72703 .72368 .72035 .71704 .71375 .71048100........................................................... .75234 .74901 .74570 .74241 .73914 .73589 .73265 .72944 .72625 .72307101........................................................... .76399 .76077 .75757 .75438 .75122 .74807 .74494 .74183 .73873 .73565102........................................................... .77552 .77241 .76932 .76625 .76319 .76015 .75712 .75411 .75111 .74813103........................................................... .78703 .78404 .78106 .77809 .77514 .77221 .76929 .76638 .76348 .76060104........................................................... .79948 .79662 .79377 .79093 .78810 .78528 .78248 .77969 .77691 .77414
105........................................................... .81159 .80885 .80612 .80340 .80069 .79799 .79530 .79262 .78995 .78729106........................................................... .82763 .82506 .82250 .81995 .81741 .81488 .81235 .80983 .80732 .80482107........................................................... .84749 .84516 .84283 .84051 .83819 .83587 .83356 .83126 .82896 .82666108........................................................... .87999 .87808 .87618 .87428 .87238 .87049 .86859 .86670 .86481 .86293109........................................................... .93900 .93800 .93700 .93600 .93500 .93400 .93300 .93200 .93100 .93000--------------------------------------------------------------------------------------------------------------------------------------------------------
(7) Effective/applicability dates. Paragraphs (f)(1) through (f)(6) apply after April 30, 1999, and before May 1, 2009. [T.D. 8540, 59 FR 30102, 30116, 30117, 30148, June 10, 1994, as amended by T.D. 8819, 64 FR 23199, 23209, Apr. 30, 1999; T.D. 8886, 65 FR 36943, June 12, 2000; T.D. 9448, 74 FR 21465, 21482, May 7, 2009; T.D. 9540, 76 FR 49612, Aug. 10, 2011] treatment of excess distributions of trusts applicable to taxable years
beginning on or after january 1, 1969 Sec. 1.665(a)-0A Excess distributions by trusts; scope of subpart D.
(a) In general. (1) Subpart D (section 665 and following), part I, subchapter J, chapter 1 of the Code as amended by the Tax Reform Act of 1969, is designed to tax the beneficiary of a trust that accumulates, rather than distributes, all or part of its income currently (i.e., an accumulation trust), in most cases, as if the income had been currently distributed to the beneficiary instead of accumulated by the trusts. Accordingly, subpart D provides special rules for the treatment of amounts paid, credited, or required to be distributed by a complex trust (one that is subject to subpart C (section 661 and following) of such part I) in any year in excess of ``distributable net income'' (as defined in section 643 (a)) for that year. Such an excess distribution is an ``accumulation distribution'' (as defined in section 665(b)). The special rules of subpart D are generally inapplicable to amounts paid, credited, or required to be distributed by a trust in a taxable year in which it qualifies as a simple trust (one that is subject to subpart B (section 651 and following) of such part I). However, see Sec. 1.665(e)-1A(b) for rules relating to the treatment of a simple trust as a complex trust.
(1) Subpart D (section 665 and following), part I, subchapter J, chapter 1 of the Code as amended by the Tax Reform Act of 1969, is designed to tax the beneficiary of a trust that accumulates, rather than distributes, all or part of its income currently (i.e., an accumulation trust), in most cases, as if the income had been currently distributed to the beneficiary instead of accumulated by the trusts. Accordingly, subpart D provides special rules for the treatment of amounts paid, credited, or required to be distributed by a complex trust (one that is subject to subpart C (section 661 and following) of such part I) in any year in excess of ``distributable net income'' (as defined in section 643 (a)) for that year. Such an excess distribution is an ``accumulation distribution'' (as defined in section 665(b)). The special rules of subpart D are generally inapplicable to amounts paid, credited, or required to be distributed by a trust in a taxable year in which it qualifies as a simple trust (one that is subject to subpart B (section 651 and following) of such part I). However, see Sec. 1.665(e)-1A(b) for rules relating to the treatment of a simple trust as a complex trust.
(2) An accumulation distribution is deemed to consist of, first, ``undistributed net income'' (as defined in section 665(a)) of the trust from preceding taxable years, and, after all the undistributed net income for all preceding taxable years has been deemed distributed, ``undistributed capital gain'' (as defined in section 665(f)) of the trust for all preceding taxable years commencing with the first year such amounts were accumulated. An accumulation distribution of undistributed capital gain is a ``capital gain distribution'' (as defined in section 665(g)). To the extent an accumulation distribution exceeds the ``undistributed net income'' and ``undistributed capital gain'' so determined, it is deemed to consist of corpus.
(3) The accumulation distribution is ``thrown back'' to the earliest ``preceding taxable year'' of the trust, which, in the case of distributions made for a taxable year beginning after December 31, 1973, from a trust (other than a foreign trust created by a U.S. person), is any taxable year beginning after December 31, 1968. Special transitional rules apply for distributions made in taxable years beginning before January 1, 1974. In the case of a foreign trust created by a U.S. person, a ``preceding taxable year'' is any year of the trust to which the Code applies.
(4) A distribution of undistributed net income (included in an accumulation distribution) and a capital gain distribution will be included in the income of the beneficiary in the year they are actually paid, credited, or required to be distributed to him. The tax on the distribution will be approximately the amount of tax the beneficiary would have paid with respect to the distribution had the income and capital gain been distributed to the beneficiary in the year earned by the trust. An additional amount equal to the ``taxes imposed on the trust'' for the preceding year is also deemed distributed. To prevent double taxation, however, the beneficiary receives a credit for such taxes.
(b) Effective dates. All regulations sections under subpart D (sections 665 through 669) which have an ``A'' suffix (such as Sec. 1.665(a)A and Sec. 1.666(b)-1A) are applicable to taxable years beginning on or after January 1, 1969, and all references therein to sections 665 through 669 are references to such sections as amended by the Tax Reform Act of 1969. Sections without the ``A'' suffix (such as Sec. 1.666(b)-1) are applicable only to taxable years beginning before January 1, 1969, and all references therein to sections 665 through 669 are references to such sections before amendment by the Tax Reform Act of 1969.
(c) Examples. Where examples contained in the regulations under subpart D refer to tax rates for years after 1968, such tax rates are not necessarily the actual rates for such years, but are only used for example purposes.
(d) Applicability to estates. Subpart D does not apply to any estate. [T.D. 7204, 37 FR 17135, Aug. 25, 1972] Sec. 1.665(a)-1A Undistributed net income.
(a) Domestic trusts. The term undistributed net income, in the case of a trust (other than a foreign trust created by a U.S. person) means, for any taxable year beginning after December 31, 1968, the distributable net income of the trust for that year (as determined under section 643(a)), less:
(1) The amount of income required to be distributed currently and any other amounts properly paid or credited or required to be distributed to beneficiaries in the taxable year as specified in section 661(a), and
(2) The amount of taxes imposed on the trust attributable to such distributable net income, as defined in Sec. 1.665 (d)-1A. The application of the rule in this paragraph to a taxable year of a trust in which income is accumulated may be illustrated by the following example:
Example. Under the terms of the trust, $10,000 of income is required to be distributed currently to A and the trustee has discretion to make additional distributions to A. During the taxable year 1971 the trust had distributable net income of $30,100 derived from royalties and the trustee made distributions of $20,000 to A. The taxable income of the trust is $10,000 on which a tax of $2,190 is paid. The undistributed net income of the trust for the taxable year 1971 is $7,910, computed as follows: Distributable net income.......................... $30,100Less:
Income currently distributable to A............. $10,000
Other amounts distributed to A.................. 10,000
Taxes imposed on the trust attributable to the 2,190
undistributed net income (see Sec. 1.665(d)-
1A)............................................
------------
Total......................................... 22,190
------------
Undistributed net income...................... 7,910
(b) Foreign trusts. The undistributed net income of a foreign trust created by a U.S. person for any taxable year is the distributable net income of such trust (see Sec. 1.643(a)-6 and the examples set forth in paragraph (b) thereof), less:
(1) The amount of income required to be distributed currently and any other amounts properly paid or credited or required to be distributed to beneficiaries in the taxable year as specified in section 661(a), and
(2) The amount of taxes imposed on such trust by chapter 1 of the Internal Revenue Code, which are attributable to items of income which are required to be included in such distributable net income. For purposes of subparagraph (2) of this paragraph, the amount of taxes imposed on the trust for any taxable year by chapter 1 of the Internal Revenue Code is the amount of taxes imposed pursuant to section 871 (relating to tax on non-resident alien individuals) which is properly allocable to the undistributed portion of the distributable net income. See Sec. 1.665(d)-1A. The amount of taxes imposed pursuant to section 871 is the difference between the total tax imposed pursuant to that section on the foreign trust created by a U.S. person for the year and the amount which would have been imposed on such trust had all the distributable net income, as determined under section 643(a), been distributed. The application of the rule in this paragraph may be illustrated by the following examples:
Example 1. A trust was created in 1952 under the laws of Country X by the transfer to a trustee in Country X of property by a U.S. person. The entire trust constitutes a foreign trust created by a U.S. person. The governing instrument of the trust provides that $7,000 of income is required to be distributed currently to a U.S. beneficiary and gives the trustee discretion to make additional distributions to the beneficiary. During the taxable year 1973 the trust had income of $10,000 from dividends of a U.S. corporation (on which Federal income taxes of $3,000 were imposed pursuant to section 871 and withheld under section 1441, resulting in the receipt by the trust of cash in the amount of $7,000), $20,000 in capital gains from the sale of stock of a Country Y corporation and $30,000 from dividends of a Country X corporation, none of the gross income of which was derived from sources within the United States. No income taxes were required to be paid to Country X or Country Y in 1973. The trustee did not file a U.S. income tax return for the taxable year 1973. The distributable net income of the trust before distributions to the beneficiary for 1973 is $60,000 ($57,000 of which is cash). During 1973 the trustee made distributions to the U.S. beneficiary equaling one-half of the trust's distributable net income. Thus, the U.S. beneficiary is treated as having had distributed to him $5,000 (composed of $3,500 as a cash distribution and $1,500 as the tax imposed pursuant to section 871 and withheld under section 1441), representing one-half of the income from U.S. sources; $10,000 in cash, representing one-half of the capital gains from the sale of stock of the Country Y corporation; and $15,000 in cash, representing one-half of the income from Country X sources for a total of $30,000. The undistributed net income of the trust at the close of taxable year 1973 is $28,500 computed as follows: Distributable net income.......................... $60,000Less:
(1) Amounts distributed to the beneficiary:
Income currently distributed to the beneficiary. $7,000
Other amounts distributed to the beneficiary.... 21,500
Taxes under sec. 871 deemed distributed to the 1,500
beneficiary....................................
-----------
Total amounts distributed to the beneficiary.. 80,000
(2) Amount of taxes imposed on the trust under $1,500
chapter 1 of the Code attributable to the
undistributed net income (See Sec. 1.665 (d)-
1A) $3,000 less $1,500)........................
-----------
Total......................................... $31,500
------------
Undistributed net income...................... 28,500
Example 2. The facts are the same as in example 1 except that property has been transferred to the trust by a person other than a U.S. person, and during 1973 the foreign trust created by a U.S. person was 60 percent of the entire foreign trust. The trustee paid no income taxes to Country X or Country Y in 1973.
(1) The undistributed net income of the portion of the entire trust which is a foreign trust created by a U.S. person for 1973 is $17,100, computed as follows: Distributable net income (60% of each item of gross income of
entire trust):
60% of $10,000 U.S. dividends.............................. $6,000
60% of $20,000 Country X capital gains..................... 12,000
60% of $30,000 Country X dividends......................... 18,000
------------
Total.................................................... 36,000Less:
(i) Amounts distributed to the beneficiary--
Income currently distributed to the beneficiary $4,200
(60% of $7,000)................................
Other amounts distributed to the beneficiary 12,900
(60% of $21,500)...............................
Taxes under sec. 871 deemed distributed to the 900
beneficiary (60% of $1,500)....................
-----------
Total amounts distributed to the beneficiary.. 18,000
(ii) Amount of taxes imposed on the trust under 900
chapter 1 of the Code attributable to the
undistributed net income (see Sec. 1.665 (d)-
1A) (60% of $1,500)............................
-----------
Total.................................................... 18,900
------------
Undistributed net income................................. 17,100
(2) The undistributed net income of the portion of the entire trust which is not a foreign trust created by a U.S. person for 1973 is $11,400, computed as follows: Distributable net income (40% of each item of gross income of
entire trust)
40% of $10,000 U.S. dividends.............................. $4,000
40% of $20,000 Country X capital gains..................... 8,000
40% of $30,000 Country X dividends......................... 12,000
------------
Total.................................................... 24,000Less:
(i) Amounts distributed to the beneficiary--
Income currently distributed to the beneficiary $2,800
(40% of $7,000)................................
Other amounts distributed to the beneficiary 8,600
(40% of $21,500)...............................
Taxes under sec. 871 deemed distributed to the 600
beneficiary (40% of $1,500)....................
-----------
Total amounts distributed to the beneficiary.. 12,000
(ii) Amount of taxes imposed on the trust under 600
chapter 1 of the Code attributable to the
undistributed net income (See Sec. 1.665 (d)-
1A) (40% of $1,500)............................
-----------
Total.................................................... 12,600
------------
Undistributed net income................................. 11,400
(c) Effect of prior distributions. The undistributed net income for any year to which an accumulation distribution for a later year may be thrown back will be reduced by accumulation distributions in intervening years that are required to be thrown back to such year. For example, if a trust has undistributed net income for 1975, and an accumulation distribution is made in 1980, there must be taken into account the effect on undistributed net income for 1975 of any accumulation distribution made in 1976, 1977, 1978, or 1979. However, undistributed net income for any year will not be reduced by any distributions in any intervening years that are excluded under section 663(a)(1), relating to gifts, bequests, etc. See paragraph (d) of Sec. 1.666(a)-1A for an illustration of the reduction of undistributed net income for any year by a subsequent accumulation distribution.
(d) Distributions made in taxable years beginning before January 1, 1974. For special rules relating to accumulation distributions of undistributed net income made in taxable years of the trust beginning before January 1, 1974, see Sec. 1.665(b)-2A. [T.D. 7204, 37 FR 17136, Aug. 25, 1972] Sec. 1.665(b)-1A Accumulation distributions.
(a) In general. (1) For any taxable year of a trust the term accumulation distribution means an amount by which the amounts properly paid, credited, or required to be distributed within the meaning of section 661(a)(2) (i.e., all amounts properly paid, credited, or required to be distributed to the beneficiary other than income required to be distributed currently within the meaning of section 661(a)(1)) for that year exceed the distributable net income (determined under section 643(a)) of the trust, reduced (but not below zero) by the amount of income required to be distributed currently. To the extent provided in section 663(b) and the regulations thereunder, distributions made within the first 65 days following a taxable year may be treated as having been distributed on the last day of such taxable year.
(1) For any taxable year of a trust the term accumulation distribution means an amount by which the amounts properly paid, credited, or required to be distributed within the meaning of section 661(a)(2) (i.e., all amounts properly paid, credited, or required to be distributed to the beneficiary other than income required to be distributed currently within the meaning of section 661(a)(1)) for that year exceed the distributable net income (determined under section 643(a)) of the trust, reduced (but not below zero) by the amount of income required to be distributed currently. To the extent provided in section 663(b) and the regulations thereunder, distributions made within the first 65 days following a taxable year may be treated as having been distributed on the last day of such taxable year.
(2) An accumulation distribution also includes, for a taxable year of the trust, any amount to which section 661(a)(2) and the preceding paragraph are inapplicable and which is paid, credited, or required to be distributed during the taxable year of the trust by reason of the exercise of a power to appoint, distribute, consume, or withdraw corpus of the trust or income of the trust accumulated in a preceding taxable year. No accumulation distribution is deemed to be made solely because the grantor or any other person is treated as owner of a portion of the trust by reason of an unexercised power to appoint, distribute, consume, or withdraw corpus or accumulated income of the trust. Nor will an accumulation distribution be deemed to have been made by reason of the exercise of a power that may affect only taxable income previously attributed to the holders of such power under subpart E (section 671 and following). See example 4 of paragraph (d) of this section for an example of an accumulation distribution occurring as a result of the exercise of a power of withdrawal.
(3) Although amounts properly paid or credited under section 661(a) do not exceed the income of the trust during the taxable year, an accumulation distribution may result if the amounts properly paid or credited under section 661(a)(2) exceed distributable net income reduced (but not below zero) by the amount required to be distributed currently under section 661(a)(1). This may occur, for example, when expenses, interest, taxes, or other items allocable to corpus are taken into account in determining taxable income and hence causing distributable net income to be less than the trust's income.
(b) Payments that are accumulation distributions. The following are some instances in which an accumulation distribution may arise:
(1) One trust to another. A distribution from one trust to another trust is generally an accumulation distribution. See Sec. 1.643(c)-1. This general rule will apply regardless of whether the distribution is to an existing trust or to a newly created trust and regardless of whether the trust to which the distribution is made was created by the same person who created the trust from which the distribution is made or a different person. However, a distribution made from one trust to a second trust will be deemed an accumulation distribution by the first trust to an ultimate beneficiary of the second trust if the primary purpose of the distribution to the second trust is to avoid the capital gain distribution provisions (see section 669 and the regulations thereunder). An amount passing from one separate share of a trust to another separate share of the same trust is not an accumulation distribution. See Sec. 1.665(g)-2A. For rules relating to the computation of the beneficiary's tax under section 668 by reason of an accumulation distribution from the second trust, see paragraphs (b)(1) and (c)(1)(i) of Sec. 1.668(b)-1A and paragraphs (b)(1) and (c)(1)(i) of Sec. 1.669(b)-1A.
(2) Income accumulated during minority. A distribution of income accumulated during the minority of the beneficiary is generally an accumulation distribution. For example, if a trust accumulates income until the beneficiary's 21st birthday, and then distributes the income to the beneficiary, such a distribution is an accumulation distribution. However, see Sec. 1.665(b)-2A for rules governing income accumulated in taxable years beginning before January 1, 1969.
(3) Amounts paid for support. To the extent that amounts forming all or part of an accumulation distribution are applied or distributed for the support of a dependent under the circumstances specified in section 677(b) or section 678(c) or are used to discharge or satisfy any person's legal obligation as that term is used in Sec. 1.662(a)-4, such amounts will be considered as having been distributed directly to the person whose obligation is being satisfied.
(c) Payments that are not accumulation distributions--(1) Gifts, bequests, etc., described in section 663(a)(1). A gift or bequest of a specific sum of money or of specific property described in section 663(a)(1) is not an accumulation distribution.
(1) Gifts, bequests, etc., described in section 663(a)(1). A gift or bequest of a specific sum of money or of specific property described in section 663(a)(1) is not an accumulation distribution.
(2) Charitable payments. Any amount paid, permanently set aside, or used for the purposes specified in section 642(c) is not an accumulation distribution, even though no charitable deduction is allowed under such section with respect to such payment.
(3) Income required to be distributed currently. No accumulation distribution will arise by reason of a payment of income required to be distributed currently even though such income exceeds the distributable net income of the trust because the payment is an amount specified in section 661(a)(1).
(d) Examples. The provisions of this section may be illustrated by the following examples:
Example 1. A trustee properly makes a distribution to a beneficiary of $20,000 during the taxable year 1976, of which $10,000 is income required to be distributed currently to the beneficiary. The distributable net income of the trust is $15,000. There is an accumulation distribution of $5,000 computed as follows. Total distribution........................................... $20,000Less: Income required to be distributed currently (section 10,000
661(a)(1))..................................................
------------
Other amounts distributed (section 661(a)(2))............ 10,000Distributable net income.......................... $15,000Less: Income required to be distributed currently. 10,000
-----------Balance of distributable net income.......................... 5,000
------------
Accumulation distribution................................ 5,000
Example 2. Under the terms of the trust instrument, an annuity of $15,000 is required to be paid to A out of income each year and the trustee may in his discretion make distributions out of income or corpus to B. During the taxable year the trust had income of $18,000, as defined in section 643(b), and expenses allocable to corpus of $5,000. Distributable net income amounted to $13,000. The trustee distributed $15,000 of income to A and, in the exercise of his discretion, paid $5,000 to B. There is an accumulation distribution of $5,000 computed as follows: Total distribution........................................... $20,000
Less: Income required to be distributed currently to A 15,000
(section 661(a)(1)).........................................
------------
Other amounts distributed (section 661(a)(2))............ 5,000Distributable net income.......................... $13,000Less: Income required to be distributed currently 15,000
to A.............................................
-----------Balance of distributable net income.......................... 0
------------
Accumulation distribution to B........................... 5,000
Example 3. Under the terms of a trust instrument, the trustee may either accumulate the trust income or make distributions to A and B. The trustee may also invade corpus for the benefit of A and B. During the taxable year, the trust had income as defined in section 643(b) of $22,000 and expenses of $5,000 allocable to corpus. Distributable net income amounts to $17,000. The trustee distributed $10,000 each to A and B during the taxable year. There is an accumulation distribution of $3,000 computed as follows: Total distribution........................................... $20,000Less: Income required to be distributed currently............ 0
------------
Other amounts distributed (section 661(a)(2))............ 20,000Distributable net income.......................... $17,000Less: Income required to be distributed currently. 0
-----------Balance of distributable net income.......................... 17,000
------------
Accumulation distribution................................ 3,000
Example 4. A dies in 1974 and bequeaths one-half the residue of his estate in trust. His widow, W, is given a power, exercisable solely by her, to require the trustee to pay her each year of the trust $5,000 from corpus. W's right to exercise such power was exercisable at any time during the year but was not cumulative, so that, upon her failure to exercise it before the end of any taxable year of the trust, her right as to that year lapsed. The trust's taxable year is the calendar year. During the calendar years 1975 and 1976, W did not exercise her right and it lapsed as to those years. In the calendar years 1977 and 1978, in which years the trust had not distributable net income, she exercised her right and withdrew $4,000 in 1977 and $5,000 in 1978. No accumulation distribution was made by the trust in the calendar years 1975 and 1976. An accumulation distribution of $4,000 was made in 1977 and an accumulation distribution of $5,000 was made in 1978. The accumulation distribution for the years 1977 and 1978 is not reduced by any amount of income of the trust attributable to her under section 678 by reason of her power of withdrawal. [T.D. 7204, 37 FR 17137, Aug. 25, 1972] Sec. 1.665(b)-2A Special rules for accumulation distributions madein taxable years beginning before January 1, 1974.
(a) General rule. Section 331(d)(2)(A) of the Tax Reform Act of 1969 excludes certain accumulated income from the tax imposed by section 668(a)(2) by providing certain exceptions from the definition of an ``accumulation distribution.'' Any amount paid, credited, or required to be distributed by a trust (other than a foreign trust created by a U.S. person) during a taxable year of the trust beginning after December 31, 1968, and before January 1, 1974, shall not be subject to the tax imposed by section 668(a)(2) to the extent of the portion of such amount that (1) would be allocated under section 666(a) to a preceding taxable year of the trust beginning before January 1, 1969, and (2) would not have been deemed an accumulation distribution because of the provisions of paragraphs (1), (2), (3), or (4) of section 665(b) as in effect on December 31, 1968, had the trust distributed such amounts on the last day of its last taxable year beginning before January 1, 1969. However, the $2,000 de minimis exception formerly in section 665(b) does not apply in the case of any distribution made in a taxable year of a trust beginning after December 31, 1968. Amounts to which this exclusion applies shall reduce the undistributed net income of the trust for the preceding taxable year or years to which such amounts would be allocated under section 666(a). However, since section 668(a)(2) does not apply to such amounts, no amount of taxes imposed on the trust allocable to such undistributed net income is deemed distributed under section 666 (b) and (c).
(b) Application of general rule. The rule expressed in paragraph (a) of this section is applied to the exceptions formerly in section 665(b) as follows:
(1) Distributions from amounts accumulated while beneficiary is under 21. (i) Paragraph (1) of section 665(b) as in effect on December 31, 1968, provided that amounts paid, credited, or required to be distributed to a beneficiary as income accumulated before the birth of such beneficiary or before such beneficiary attains the age of 21 were not to be considered to be accumulation distributions. If an accumulation distribution is made in a taxable year of the trust beginning after December 31, 1968, and before January 1, 1974, and under section 666(a) such accumulation distribution would be allocated to a preceding taxable year beginning before January 1, 1969, no tax shall be imposed under section 668(a)(2) to the extent the income earned by the trust for such preceding taxable year would be deemed under Sec. 1.665(b)-2(b)(1) to have been accumulated before the beneficiary's birth or before his 21st birthday. The provisions of this subparagraph may be illustrated by the following example:
Example. A trust on the calendar year basis was established on January 1, 1965, to accumulate the income during the minority of B, and to pay the accumulated income over to B upon his attaining the age of 21. B's 21st birthday is January 1, 1973. On January 2, 1973, the trustee pays over to B all the accumulated income of the trust. The distribution is an accumulation distribution that may be allocated under section 666(a) to 1968, 1969, 1970, 1971, and 1972 (the 5 preceding taxable years as defined in Sec. 1.665(e)-1A). To the extent the distribution is allocated to 1968, no tax is imposed under section 668(a)(2).
(ii) As indicated in paragraph (a) of this section, a distribution of an amount excepted from the tax otherwise imposed under section 668(a)(2) will reduce undistributed net income for the purpose of determining the effect of a future distribution. Thus, under the facts of the example in subdivision (i) of this subparagraph, the undistributed net income for the trust's taxable year 1968 would be reduced by the amount of the distribution allocated to that year under section 666(a).
(2) Emergency distributions. Paragraph (2) of section 665(b) as in effect on December 31, 1968, provided an exclusion from the definition of an accumulation distribution for amounts properly paid or credited to a beneficiary to meet his emergency needs. Therefore, if an accumulation distribution is made from a trust in a taxable year beginning before January 1, 1974, and under section 666(a) such accumulation distribution would be allocated to a preceding taxable year of the trust beginning before January 1, 1969, no tax shall be imposed under section 668(a)(2) if such distribution would have been considered an emergency distribution under Sec. 1.665(b)-2(b)(2) had it been made in a taxable year of the trust beginning before January 1, 1969. For example, assume a trust on a calendar year basis in 1972 makes an accumulation distribution which under Sec. 1.665(b)-2(b) (2) would be considered an emergency distribution and under section 666(a) the distribution would be allocated to the years 1967, 1968, and 1969. To the extent such amount is allocated to 1967 and 1968, no tax would be imposed under section 668(a)(2).
(3) Certain distributions at specified ages. Paragraph (3) of section 665(b) as in effect on December 31, 1968, provided an exclusion (in the case of certain trusts created before January 1, 1954) from the definition of an accumulation distribution for amounts properly paid or credited to a beneficiary upon his attaining a specified age or ages, subject to certain restrictions (see Sec. 1.665(b)-2(b)(3)). Therefore, a distribution from a trust in a taxable year beginning after December 31, 1968, will not be subject to the tax imposed under section 668(a)(2) to the extent such distribution would be allocated to a preceding taxable year of the trust beginning before January 1, 1969, if such distribution would have qualified under the provisions of Sec. 1.665(b)-2(b)(3) had it been made in a taxable year of the trust to which such section was applicable.
(4) Certain final distributions. Paragraph (4) of section 665(b) as in effect on December 31, 1968, provided an exclusion from the definition of an accumulation distribution for amounts properly paid or credited to a beneficiary as a final distribution of the trust if such final distribution was made more than 9 years after the date of the last transfer to such trust. Therefore, amounts properly paid or credited to a beneficiary as a final distribution of a trust in a taxable year of a trust beginning after December 31, 1968, and before January 1, 1974, will not be subject to the tax imposed under section 668(a)(2) to the extent such distribution would be allocated to a preceding taxable year of the trust beginning before January 1, 1969, if such final distribution was made more than 9 years after the date of the last transfer to such trust. The provisions of this subparagraph may be illustrated by the following example:
Example. A trust on a calendar year basis was established on January 1, 1958, and no additional transfers were made to it. On January 1, 1973, the trustee terminates the trust and on the same day he makes a final distribution to the beneficiary, B. The distribution is an accumulation distribution that may be allocated under section 666(a) to 1968, 1969, 1970, 1971, and 1972 (the 5 preceding taxable years as defined in Sec. 1.665(e)-1A). Because more than 9 years elapsed between the date of the last transfer to the trust and the date of final distribution, the distribution is not taxed under section 668 (a) (2) to the extent it would be allocated to 1968 under section 666(a). [T.D. 7204, 37 FR 17138, Aug. 25, 1972] Sec. 1.665(c)-1A Special rule applicable to distributions by certain foreign trusts.
(a) In general. Except as provided in paragraph (b) of this section, for purposes of section 665 any amount paid to a U.S. person which is from a payor who is not a U.S. person and which is derived directly or indirectly from a foreign trust created by a U.S. person shall be deemed in the year of payment to the U.S. person to have been directly paid to the U.S. person by the trust. For example, if a nonresident alien receives a distribution from a foreign trust created by a U.S. person and then pays the amount of the distribution over to a U.S. person, the payment of such amount to the U.S. person represents an accumulation distribution to the U.S. person from the trust to the extent that the amount received would have been an accumulation distribution had the trust paid the amount directly to the U.S. person in the year in which the payment was received by the U.S. person. This section also applies in a case where a nonresident alien receives indirectly an accumulation distribution from a foreign trust created by a U.S. person and then pays it over to a U.S. person. An example of such a transaction is one where the foreign trust created by a U.S. person makes the distribution to an intervening foreign trust created by either a U.S. person or a person other than a U.S. person and the intervening trust distributes the amount received to a nonresident alien who in turn pays it over to a U.S. person. Under these circumstances, it is deemed that the payment received by the U.S. person was received directly from a foreign trust created by a U.S. person.
(b) Limitation. In the case of a distribution to a beneficiary who is a U.S. person, paragraph (a) of this section does not apply if the distribution is received by such beneficiary under circumstances indicating lack of intent on the part of the parties to circumvent the purposes for which section 7 of the Revenue Act of 1962 (76 Stat. 985) was enacted. [T.D. 7204, 37 FR 17139 Aug. 25, 1972] Sec. 1.665(d)-1A Taxes imposed on the trust.
(a) In general. (1) For purposes of subpart D, the term taxes imposed on the trust means the amount of Federal income taxes properly imposed for any taxable year on the trust that are attributable to the undistributed portions of distributable net income and gains in excess of losses from the sales or exchanges of capital assets. Except as provided in paragraph (c)(2) of this section, the minimum tax for tax preferences imposed by section 56 is not a tax attributable to the undistributed portions of distributable net income and gains in excess of losses from the sales or exchanges of capital assets. See section 56 and the regulations thereunder.
(1) For purposes of subpart D, the term taxes imposed on the trust means the amount of Federal income taxes properly imposed for any taxable year on the trust that are attributable to the undistributed portions of distributable net income and gains in excess of losses from the sales or exchanges of capital assets. Except as provided in paragraph (c)(2) of this section, the minimum tax for tax preferences imposed by section 56 is not a tax attributable to the undistributed portions of distributable net income and gains in excess of losses from the sales or exchanges of capital assets. See section 56 and the regulations thereunder.
(2) In the case of a trust that has received an accumulation distribution from another trust, the term taxes imposed on the trust also includes the amount of taxes deemed distributed under Sec. Sec. 1.666(b)-1A, 1.666(c)-1A, 1.669(d)-1A, and 1.669(e)-1A (whichever are applicable) as a result of such accumulation distribution, to the extent that they were taken into account under paragraphs (b)(2) or (c)(1)(vi) of Sec. 1.668 (b)-1A and (b)(2) or (c)(1)(vi) of Sec. 1.669(b)-1A in computing the partial tax on such accumulation distribution. For example, assume that trust A, a calendar year trust, makes an accumulation distribution in 1975 to trust B, also on the calendar year basis, in connection with which $500 of taxes are deemed under Sec. 1.666(b)-1A to be distributed to trust B. The partial tax on the accumulation distribution is computed under paragraph (b) of Sec. 1.668(b)-1A (the exact method) to be $600 and all of the $500 is used under paragraph (b)(2) of Sec. 1.668(b)-1A to reduce the partial tax to $100. The taxes imposed on trust B for 1975 will, in addition to the $100 partial tax, also include the $500 used to reduce the partial tax.
(b) Taxes imposed on the trust attributable to undistributed net income. (1) For the purpose of subpart D, the term taxes imposed on the trust attributable to the undistributed net income means the amount of Federal income taxes for the taxable year properly allocable to the undistributed portion of the distributable net income for such taxable year. This amount is (i) an amount that bears the same relationship to the total taxes of the trust for the year (other than the minimum tax for tax preferences imposed by section 56), computed after the allowance of credits under section 642(a), as (a) the taxable income of the trust, other than the capital gains not included in distributable net income less their share of section 1202 deduction, bears to (b) the total taxable income of the trust for such year or, (ii) if the alternative tax computation under section 1201(b) is used and there are no net short-term gains, an amount equal to such total taxes less the amount of the alternative tax imposed on the trust and attributable to the capital gain. Thus, for the purposes of subpart D, in determining the amount of taxes imposed on the trust attributable to the undistributed net income, that portion of the taxes paid by the trust attributable to capital gain allocable to corpus is excluded. The rule stated in this subparagraph may be illustrated by the following example, which assumes that the alternative tax computation is not used:
(1) Under the terms of a trust, which reports on the calendar year basis, the income may be accumulated or distributed to A in the discretion of the trustee and capital gains are allocable to corpus. During the taxable year 1974, the trust had income of $20,000 from royalties, long-term capital gains of $10,000, and expenses of $2,000. The trustee in his discretion made a distribution of $10,000 to A. The taxes imposed on the trust for such year attributable to the undistributed net income are $2,319, determined as shown below.
(2) The distributable net income of the trust computed under section 643(a) is $18,000 (royalties of $20,000 less expenses of $2,000). The total taxes paid by the trust are $3,787, computed as follows: Royalties.................................................... $20,000Capital gain allocable to corpus............................. 10,000
------------
Gross income............................................. 30,000Deductions:
Expenses........................................ $2,000
Distributions to A.............................. 10,000
Capital gain deduction.......................... 5,000
Personal exemption.............................. 100
-----------
17,100
------------Taxable income............................................... 12,900
Total income taxes....................................... 3,787
(3) Taxable income other than capital gains less the section 1202 deduction is $7,900 ($12,900-($10,000-$5,000)). Therefore, the amount of taxes imposed on the trust attributable to the undistributed net income is $2,319, computed as follows: $3,787 (total taxes) x $7,900 (taxable income other than $2,319
capital gains not included in d.n.i. less the 1202
deduction) divided by $12,900 (taxable income)..............
(2) If in any taxable year an accumulation distribution of undistributed net income is made by the trust which results in a throwback to a prior year, the taxes of the prior year imposed on the trust attributable to any remaining undistributed net income of such prior year are the taxes prescribed in subparagraph (1) of this paragraph reduced by the taxes of the prior year deemed distributed under section 666 (b) or (c). The provisions of this subparagraph may be illustrated by the following example:
Example. Assume the same facts as in the example in subparagraph (1) of this paragraph. In 1975 the trust makes an accumulation distribution, of which an amount of undistributed net income is deemed distributed in 1974. Taxes imposed on the trust (in the amount of $1,000) attributable to the undistributed net income are therefore deemed distributed in such year. Consequently, the taxes imposed on the trust subsequent to the 1975 distribution attributable to the remaining undistributed net income are $1,319 ($2,319 less $1,000).
(c) Taxes imposed on the trust attributable to undistributed capital gain--(1) Regular tax. For the purpose of subpart D the term taxes imposed on the trust attributable to undistributed capital gain means the amount of Federal income taxes for the taxable year properly attributable to that portion of the excess of capital gains over capital losses of the trust that is allocable to corpus for such taxable year. Such amount is the total of:
(1) Regular tax. For the purpose of subpart D the term taxes imposed on the trust attributable to undistributed capital gain means the amount of Federal income taxes for the taxable year properly attributable to that portion of the excess of capital gains over capital losses of the trust that is allocable to corpus for such taxable year. Such amount is the total of:
(i) The amount computed under subparagraph (2) of this paragraph (the minimum tax), plus
(ii) The amount that bears the same relationship to the total taxes of the trust for the year (other than the minimum tax), computed after the allowance of credits under section 642(a), as (a) the excess of capital gains over capital losses for such year that are not included in distributable net income, computed after its share of the deduction under section 1202 (relating to the deduction for capital gains) has been taken into account, bears to the greater of (b) the total taxable income of the trust for such year, or (c) the amount of capital gains computed under (a) of this subdivision. However, if the alternative tax computation under section 1201(b) is used and there are no net short-term gains, the amount is the amount of the alternative tax imposed on the trust and attributable to the capital gain. The application of this subparagraph may be illustrated by the following example, which assumes that the alternative tax computation is not used:
Example. Assume the same facts as in the example in paragraph (b)(1). The capital gains not included in d.n.i. are $10,000, and the deduction under section 1202 is $5,000. The amount of taxes imposed on the trust attributable to undistributed capital gain is $1,468, computed as follows: $3,787 (total taxes) x $5,000 (capital gains not included in $1,468
d.n.i. less section 1202 deductions) divided by $12,900
(taxable income)............................................
(2) Minimum tax. The term taxes imposed on the trust attributable to the undistributed capital gain also includes the minimum tax for tax preferences imposed on the trust by section 56 with respect to the undistributed capital gain. The amount of such minimum tax so included bears the same relation to the total amount of minimum tax imposed on the trust by section 56 for the taxable year as one-half the net capital gain (net section 1201 gain for taxable years beginning before January 1, 1977) (as defined in section 1222(11)) from such taxable year bears to the sum of the items of tax preference of the trust for such taxable year which are apportioned to the trust in accordance with Sec. 1.58-3(a) (1).
(3) Reduction for prior distribution. If in any taxable year a capital gain distribution is made by the trust which results in a throwback to a prior year, the taxes of the prior year imposed on the trust attributable to any remaining undistributed capital gain of the prior year are the taxes prescribed in subparagraph (1) of this paragraph reduced by the taxes of the prior year deemed distributed under section 669 (d) or (e). The provisions of this subparagraph may be illustrated by the following example:
Example. Assume the same facts as in the example in subparagraph (1) of this paragraph. In 1976, the trust makes a capital gain distribution, of which an amount of undistributed capital gain is deemed distributed in 1974. Taxes imposed on the trust (in the amount of $500) attributable to the undistributed capital gain are therefore deemed distributed in such year. Consequently, the taxes imposed on the trust attributable to the remaining undistributed capital gain are $968 ($1,468 less $500). [T.D. 7204, 37 FR 17139, Aug. 25, 1972, as amended by T.D. 7728, 45 FR 72650, Nov. 3, 1980] Sec. 1.665(e)-1A Preceding taxable year.
(a) Definition--(1) Domestic trusts--(i) In general. For purposes of subpart D, in the case of a trust other than a foreign trust created by a U.S. person, the term preceding taxable year serves to identify and limit the taxable years of a trust to which an accumulation distribution consisting of undistributed net income or undistributed capital gain may be allocated (or ``thrown back'') under section 666(a) and 669(a). An accumulation distribution consisting of undistributed net income or undistributed capital gain may not be allocated or ``thrown back'' to a taxable year of a trust if such year is not a ``preceding taxable year.''
(1) Domestic trusts--(i) In general. For purposes of subpart D, in the case of a trust other than a foreign trust created by a U.S. person, the term preceding taxable year serves to identify and limit the taxable years of a trust to which an accumulation distribution consisting of undistributed net income or undistributed capital gain may be allocated (or ``thrown back'') under section 666(a) and 669(a). An accumulation distribution consisting of undistributed net income or undistributed capital gain may not be allocated or ``thrown back'' to a taxable year of a trust if such year is not a ``preceding taxable year.''
(i) In general. For purposes of subpart D, in the case of a trust other than a foreign trust created by a U.S. person, the term preceding taxable year serves to identify and limit the taxable years of a trust to which an accumulation distribution consisting of undistributed net income or undistributed capital gain may be allocated (or ``thrown back'') under section 666(a) and 669(a). An accumulation distribution consisting of undistributed net income or undistributed capital gain may not be allocated or ``thrown back'' to a taxable year of a trust if such year is not a ``preceding taxable year.''
(ii) Accumulation distributions. In the case of an accumulation distribution consisting of undistributed net income made in a taxable year beginning before January 1, 1974, any taxable year of the trust that precedes by more than 5 years the taxable year of the trust in which such accumulation distribution was made is not a ``preceding taxable year.'' Thus, for a domestic trust on a calendar year basis, calendar year 1967 is not a ``preceding taxable year'' with respect to an accumulation distribution made in calendar year 1973, whereas calendar year 1968 is a ``preceding taxable year.'' In the case of an accumulation distribution made during a taxable year beginning after December 31, 1973, any taxable year of the trust that begins before January 1, 1969, is not a ``preceding taxable year.'' Thus, for a domestic trust on a calendar year basis, calendar year 1968 is not a ``preceding taxable year'' with respect to an accumulation distribution made in calendar year 1975, whereas calendar year 1969 is a ``preceding taxable year.''
(iii) Capital gain distributions. In the case of an accumulation distribution that is a capital gain distribution, any taxable year of the trust that (a) begins before January 1, 1969, or (b) is prior to the first year in which income is accumulated, whichever occurs later, is not a ``preceding taxable year.'' Thus, for the purpose of capital gain distributions and section 669, only taxable years beginning after December 31, 1968, can be ``preceding taxable years.'' See Sec. 1.688(a)-1A(c).
(2) Foreign trusts created by U.S. persons. For purposes of subpart D, in the case of a foreign trust created by a U.S. person, the term ``preceding taxable year'' does not include any taxable year to which part I of subchapter J does not apply. See section 683 and regulations thereunder. Accordingly, the provisions of subpart D may not, in the case of a foreign trust created by a U.S. person, be applied to any taxable year which begins before 1954 or ends before August 17, 1954. For example, if a foreign trust created by a U.S. person (reporting on the calendar year basis) makes a distribution during the calendar year 1970 of income accumulated during prior years, the earliest year of the trust to which the accumulation distribution may be allocated under such subpart D is 1954, but it may not be allocated to 1953 and prior years, since the Internal Revenue Code of 1939 applies to those years.
(b) Simple trusts. A taxable year of a trust during which the trust was a simple trust (that is, was subject to subpart B) for the entire year shall not be considered a ``preceding taxable year'' unless during such year the trust received ``outside income'' or unless the trustee did not distribute all of the income of the trust that was required to be distributed currently for such year. In such event, undistributed net income for such year shall not exceed the greater of the ``outside income'' or income not distributed during such year. For purposes of this paragraph, the term outside income means amounts that are included in distributable net income of the trust for the year but that are not ``income'' of the trust as that term is defined in Sec. 1.643(b)-1. Some examples of ``outside income'' are:
(1) Income taxable to the trust under section 691;
(2) Unrealized accounts receivable that were assigned to the trust; and
(3) Distributions from another trust that include distributable net income or undistributed net income of such other trust. The term outside income, however, does not include amounts received as distributions from an estate, other than income specified in (1) and (2), for which the estate was allowed a deduction under section 661(a). The application of this paragraph may be illustrated by the following examples:
Example 1. By his will D creates a trust for his widow W. The terms of the trust require that the income be distributed currently (i.e., it is a simple trust), and authorize the trustee to make discretionary payments of corpus to W. Upon W's death the trust corpus is to be distributed to D's then living issue. The executor of D's will makes a $10,000 distribution of corpus to the trust that carries out estate income consisting of dividends and interest to the trust under section 662(a)(2). The trust reports this income as its only income on its income tax return for its taxable year in which ends the taxable year of the estate in which the $10,000 distribution was made, and pays a tax thereon of $2,106. Thus, the trust has undistributed net income of $7,894 ($10,000 -$2,106). Several years later the trustee makes a discretionary corpus payment of $15,000 to W. This payment is an accumulation distribution under section 665(b). However, since the trust had no ``outside income'' in the year of the estate distribution, such year is not a preceding taxable year. Thus, W is not treated as receiving undistributed net income of $7,894 and taxes thereon of $2,106 for the purpose of including the same in her gross income under section 668. The result would be the same if the invasion power were not exercised and the accumulation distribution occurred as a result of the distribution of the corpus to D's issue upon the death of W.
Example 2. Trust A, a simple trust on the calendar year basis, received in 1972 extraordinary dividends or taxable stock dividends that the trustee in good faith allocated to corpus, but that are determined in 1974 to have been currently distributable to the beneficiary. See section 643(a)(4) and Sec. 1.643(a)-4. Trust A would qualify for treatment under subpart C for 1974, the year of distribution of the extraordinary dividends or taxable stock dividends, because the distribution is not out of income of the current taxable year and is treated as another amount properly paid or credited or required to be distributed for such taxable year within the meaning of section 661(a) (2). Also, the distribution in 1974 qualifies as an accumulation distribution for the purposes of subpart D. For purposes only of such subpart D, trust A would be treated as subject to the provisions of such subpart C for 1972, the preceding taxable year in which the extraordinary or taxable stock dividends were received, and, in computing undistributed net income for 1972, the extraordinary or taxable stock dividends would be included in distributable net income under section 643(a). The rule stated in the preceding sentence would also apply if the distribution in 1974 was made out of corpus without regard to a determination that the extraordinary dividends or taxable stock dividends in question were currently distributable to the beneficiary. [T.D. 7204, 37 FR 17141, Aug. 25, 1972] Sec. 1.665(f)-1A Undistributed capital gain.
(a) Domestic trusts. (1) The term undistributed capital gain means (in the case of a trust other than a foreign trust created by a U.S. person), for any taxable year of the trust beginning after December 31, 1968, the gains in excess of losses for that year from the sale or exchange of capital assets of the trust less:
(1) The term undistributed capital gain means (in the case of a trust other than a foreign trust created by a U.S. person), for any taxable year of the trust beginning after December 31, 1968, the gains in excess of losses for that year from the sale or exchange of capital assets of the trust less:
(i) The amount of such gains that are included in distributable net income under section 643(a)(3) and Sec. 1.643(a)-3.
(ii) The amount of taxes imposed on the trust for such year attributable to such gains, as defined in Sec. 1.665(d)-1A, and
(iii) In the case of a trust that does not use the alternative method for computing taxes on capital gains of the taxable year, the excess of deductions (other than deductions allowed under section 642(b) relating to personal exemption or section 642(c) relating to charitable contributions) over distributable net income for such year to the extent such excess deductions are properly allowable in determining taxable income for such year. For purposes of computing the amount of capital gain under this paragraph, no deduction under section 1202, relating to deduction for excess of capital gains over capital losses, shall be taken into account. The application of this subparagraph may be illustrated by the following example:
Example. Under the terms of the trust, the trustee must distribute all income currently and has discretion to distribute capital gain to A or to allocate it to corpus. During the taxable year 1971 the trust recognized capital gain in the amount of $15,000, and capital losses of $5,000, and had interest income (after expenses) of $6,000. The trustee distributed $8,000 to A, consisting of $6,000 of interest and $2,000 of capital gain. The $2,000 of gain distributed to A is included in the computation of distributable net income under Sec. 1.643(a)-3. The balance of the capital gain is not included in distributable net income since it is allocated to corpus and not paid, credited, or required to be distributed to any beneficiary. The trust paid taxes of $671, all of which are attributable under Sec. 1.665(d)-1A to the undistributed capital gain. The amount of undistributed capital gain of the trust for 1971 is therefore $7,329, computed as follows: Total capital gains.......................................... $15,000Less: Capital losses......................................... 5,000
------------Gains in excess of losses.................................... 10,000
============Less:Amount of capital gain included in distributable net income.. 2,000
Taxes imposed on the trust attributable to the 671
undistributed capital gain (see Sec. 1.665(d)-1A).......
------------
2,671
------------Undistributed capital gain................................... 7,329
============
(2) For purposes of subparagraph (1) of this paragraph, the term losses for that year includes losses of the trusts from the sale or exchange of capital assets in preceding taxable years not included in the computation of distributable net income of any year, reduced by such losses taken into account in a subsequent preceding taxable year in computing undistributed capital gain but not reduced by such losses taken into account in determining the deduction under section 1211. See section 1212(b)(2) and the regulations thereunder. For example, assume that a trust had a net long-term capital loss in 1970 of $5,000. During the years 1971 through 1975, the trust had no capital gains or capital losses. In 1976, it has a long-term capital gain of $8,000, which it allocates to corpus and does not distribute to a beneficiary, but has no taxes attributable to such gain. The undistributed capital gain for 1976 is $8,000-$5,000, or $3,000, even though all or a part of the $5,000 loss was claimed under section 1211 as a deduction in years 1970 through 1975.
(b) Foreign trusts. Distributable net income for a taxable year of a foreign trust created by a U.S. person includes capital gains in excess of capital losses for such year (see Sec. 1.643(a)-6(a)(3)). Thus, a foreign trust created by a U.S. person can never have any undistributed capital gain. [T.D. 7204, 37 FR 17142, Aug. 25, 1972] Sec. 1.665(g)-1A Capital gain distribution.
For any taxable year of a trust, the term capital gain distribution means, to the extent of the undistributed capital gain of the trust, that portion of an accumulation distribution that exceeds the amount of such accumulation distribution deemed under section 666(a) to be undistributed net income of the trust for all preceding taxable years. See Sec. 1.665(b)-1A for the definition of ``accumulation distribution''. For any such taxable year the undistributed capital gain includes the total undistributed capital gain for all years of the trust beginning with the first taxable year beginning after December 31, 1968, in which income (as determined under section 643(b)) is accumulated, and ending before such taxable year. See Sec. 1.665(g)-2A for application of the separate share rule. The application of this section may be illustrated by the following example:
Example. A trust on the calendar year basis made the following accumulations. For purposes of this example, the undistributed net income is the same as income under applicable local law. No income was accumulated prior to 1970. ------------------------------------------------------------------------
Undistributed Undistributed
Year net income capital gain------------------------------------------------------------------------1969................................ None $10,0001970................................ $1,000 3,0001971................................ None 4,000------------------------------------------------------------------------
The trust has distributable net income in 1972 of $2,000 and recognizes capital gains of $4,500 that are allocable to corpus. On December 31, 1972, the trustee makes a distribution of $20,000 to the beneficiary. There is an accumulation distribution of $18,000 $20,000 distribution less $2,000 d.n.i.) that consists of undistributed net income of $1,000 (see Sec. 1.666(a)-1A) and a capital gain distribution of $7,000. The capital gain distribution is computed as follows: Accumulation distribution.................................... $18,000Less: Undistributed net income............................... 1,000
----------
Balance.................................................. 17,000
==========Capital gain distribution (undistributed capital gain of the 7,000
trust for 1972 ($3,000 from 1970 and $4,000 from 1971)).....
----------
Balance (corpus)......................................... 10,000
No undistributed capital gain is deemed distributed from 1969 because 1969 is a year prior to the first year in which income is accumulated (1970). The accumulation distribution is not deemed to consist of any part of the capital gains recognized in 1972. [T.D. 7204, 37 FR 17142, Aug. 25, 1972] Sec. 1.665(g)-2A Application of separate share rule.
(a) In general. If the separate share rule of section 663(c) is applicable for any taxable year of a trust, subpart D is applied as if each share were a separate trust except as provided in paragraph (c) of this section and in Sec. 1.668(a)-1A(c). Thus, the amounts of an ``accumulation distribution'', ``undistributed net income'', ``undistributed capital gain'', and ``capital gain distribution'' are computed separately for each share.
(b) Allocation of taxes--undistributed net income. The ``taxes imposed on the trust attributable to the undistributed net income'' are allocated as follows:
(1) There is first allocated to each separate share that portion of the ``taxes imposed on the trust attributable to the undistributed net income'' (as defined in Sec. 1.665(d)-1A(b)), computed before the allowance of any credits under section 642(a), that bears the same relation to the total of such taxes that the distributable net income of the separate share bears to the distributable net income of the trust, adjusted for this purpose as follows:
(i) There is excluded from distributable net income of the trust and of each separate share any tax-exempt interest, foreign income of a foreign trust, and excluded dividends, to the extent such amounts are included in distributable net income pursuant to section 643(a) (5), (6), and (7); and
(ii) The distributable net income of the trust is reduced by any deductions allowable under section 661 for amounts paid, credited, or required to be distributed during the taxable year, and the distributable net income of each separate share is reduced by any such deduction allocable to that share.
(2) The taxes so determined for each separate share are then reduced by that portion of the credits against tax allowable to the trust under section 642(a) in computing the ``taxes imposed on the trust'' that bears the same relation to the total of such credits that the items of distributable net income allocable to the separate share with respect to which the credit is allowed bear to the total of such items of the trust.
(c) Allocation of taxes--undistributed capital gain. The ``taxes imposed on the trust attributable to undistributed capital gain'' are allocated as follows:
(1) There is first allocated to each separate share that portion of the ``taxes imposed on the trust attributable to undistributed capital gain'' (as defined in Sec. 1.665(d)-1A(c)), computed before the allowance of any credits under section 642(a), that bears the same relation to the total of such taxes that the undistributed capital gain (prior to the deduction of taxes under section 665(c)(2)) of the separate share bears to the total such undistributed capital gain of the trust.
(2) The taxes so determined for each separate share are then reduced by that portion of the credits against tax allowable to the trust under section 642(a) in computing the ``taxes imposed on the trust'' that bears the same relation to the total of such credits that the capital gain allocable to the separate share with respect to which the credit is allowed bear to the total of such capital gain of the trust.
(d) Termination of a separate share. (1) If upon termination of a separate share, an amount is properly paid, credited, or required to be distributed by the trust under section 661(a)(2) to a beneficiary from such share, an accumulation distribution will be deemed to have been made to the extent of such amount. In determining the distributable net income of such share, only those items of income and deduction for the taxable year of the trust in which such share terminates, properly allocable to such share, shall be taken into consideration.
(1) If upon termination of a separate share, an amount is properly paid, credited, or required to be distributed by the trust under section 661(a)(2) to a beneficiary from such share, an accumulation distribution will be deemed to have been made to the extent of such amount. In determining the distributable net income of such share, only those items of income and deduction for the taxable year of the trust in which such share terminates, properly allocable to such share, shall be taken into consideration.
(2) No accumulation distribution will be deemed to have been made upon the termination of a separate share to the extent that the property constituting such share, or a portion thereof, continues to be held as a part of the same trust. The undistributed net income, undistributed capital gain, and the taxes imposed on the trust attributable to such items, if any, for all preceding taxable years (reduced by any amounts deemed distributed under sections 666(a) and 669(a) by reason of any accumulation distribution of undistributed net income or undistributed capital gain in prior years or the current taxable year), which were allocable to the terminating share, shall be treated as being applicable to the trust itself. However, no adjustment will be made to the amounts deemed distributed under sections 666 and 669 by reason of an accumulation distribution of undistributed net income or undistributed capital gain from the surviving share or shares made in years prior to the year in which the terminating share was added to such surviving share or shares.
(3) The provisions of this paragraph may be illustrated by the following example:
Example. A trust was established under the will of X for the benefit of his wife and upon her death the property was to continue in the same trust for his two sons, Y and Z. The separate share rule is applicable to this trust. The trustee had discretion to pay or accumulate the income to the wife, and after her death was to pay each son's share to him after he attained the age of 25. When the wife died, Y was 23 and Z was 28.
(1) Upon the death of X's widow, there is no accumulation distribution. The entire trust is split into two equal shares, and therefore the undistributed net income and the undistributed capital gain of the trust are split into two shares.
(2) The distribution to Z of his share after his mother's death is an accumulation distribution of his separate share of one-half of the undistributed net income and undistributed capital gain. [T.D. 7204, 37 FR 17142, Aug. 25, 1972]
grantors and others treated as substantial owners