Charitable Gift Annuity - Two Life

Prepared for: Donor name

A. Input Assumptions
Date of transfer June 3, 2023
Fair market value of property transferred $100,000.00
Nearest age on the date of the gift for Beneficiary 1 is 95
Nearest age on the date of the gift for Beneficiary 2 is 90
Date of first payment June 30, 2023
Annual annuity rate for immediate annuity 9.5%
Payment frequency Quarterly
Prorate first payment or Full first payment? Prorate
Is payment at the beginning or end of the payment period? End
IRC Sec. 7520(a) election to use 4/2023 discount rate of 5%
The mortality table is based on the census taken in year 2000
B. Present Value of Remainder Interest - Immediate
1. Net fair market value paid for annuity $100,000.00
2. Annual annuity rate 9.5%
3. Annuity amount payable on an annual basis $9,500.00
4. Factor for present worth of a single life annuity (based on table S) 4.5582
5. Adjustment factor based on payment frequency from Pub. 1457, Table K 1.0186
6. Adjusted value of $1.00 (Line 4 * Line 5) 4.643
7. Adjusted annuity value (Line 3 * Line 6) $44,108.50
8. Excess of actual 1st payment over pro rata 1st payment
(0 for pro rata first payment)
$0.00
9. Present value of annuity (Line 7 + Line 8) $44,108.50
10. Minimum value of annuity (lesser of line 1 and line 9) $44,108.50
11. Present value of remainder interest (Line 1 - Line 10) $55,891.50

Depending on the type of asset you contribute, a portion of your payment may be taxable to you as a combination of ordinary income, long-term capital gain, and a tax-free return of principal. This report has been calculated assuming a contribution of cash. Each of your next 6.2 years payments of $9,500.00 will contain $7,114.27 of tax-free income and $2,385.73 of ordinary income. All income will be ordinary after 6.2 years.

NOTE: This calculation is provided for educational purposes only. The type of assets transferred, the actual date of the gift, and other factors may have a material effect on the amount or use of your deduction. You are advised to seek the advice of your tax advisors before implementing a gift of this type.