Cal. Code Regs. tit. 18 § 15552.9

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 15552.9 - Gifts Made on or After November 10, 1969 and Before January 1, 1975

The tables set forth in this regulation are used to determine the value of a future, contingent or limited estate, income or interest in property in the case of a gift made on or after November 10, 1969 and before January 1, 1975.

The value of a future, contingent or limited estate, income or interest in property is generally the present value or worth of such estate, income or interest at the date of gift. In this connection, during the period commencing November 10, 1969 and ending December 31, 1974, inclusive, the Gift Tax Law specifically provided that such value or worth is to be determined in accordance with the standards of mortality and values set forth in the United States Life Tables and Actuarial Tables 1939-1941, Table 38, published by the Bureau of the Census of the United States Department of Commerce, and the rate of interest used in computing the present value of the estate, income or interest is 3 1/2 percent per annum compounded annually. The law further provided that in determining the present value or worth as of the date of the gift of a future, contingent or limited estate, income or interest, other than an annuity in a fixed amount, the yearly income, or the annual value of the use or income, of the estate, income or interest, was considered equivalent to 3 1/2 percent of the appraised value of the property upon which the estate, income or interest was based.

A single life annuity table of 3 1/2 percent showing the present value or worth of an annuity, a life estate and a remainder interest of $1 due at the end of each year during the life of a person of a specified age and of $1 due at the death of a person of a specified age respectively, is set forth below as Table C. The present value or worth of 3 1/2 percent of an annuity for a term certain, and income interest for a term certain, and a remainder interest postponed for a term certain is set forth below as Table D.

The tables below are to be applied in the same manner as illustrated in Section 15552.1 through Section 15552.7, above, substituting the factors shown in Table C for the factors from Tables A(1) and A(2), and the factors shown in Table D for the factors from Table B in the illustrations. Note that in the case of gifts made prior to January 1, 1975, there is no distinction between male and female in valuing an interest measured by the life of a person, or in valuing the remainder interest following a preceding estate measured by the life of one or more persons. Table C applies to male and female alike. Note also that in cases of annuities payable at regular intervals of less than one year, the adjustment factors differ from those which apply in cases of gifts made on or after January 1, 1975.

(a) United States Life Tables and Actuarial Tables 1939-1941, Table 38, published by the Bureau of the Census of the United States Department of Commerce with interest at 3 1/2 percent per annum compounded annually, showing the present value of an annuity, a life estate and remainder interest of $1 per year during the life of a person of a specified age.

(Effective as to gifts made on or after November 10, 1969, and before January 1, 1975.)

TABLE C

Table, single life, 3 1/2 percent, showing the present worth of an annuity, of a life interest, and of a remainder interest.

1	2	3	4
Age	Annuity	Life Estate	Remainder
0	23.9685	.83890	.16110
1	24.9035	.87162	.12838
2	24.8920	.87122	.12878
3	24.8246	.86886	.13114
4	24.7378	.86582	.13418
5	24.6392	.86237	.13763
6	24.5396	.85864	.14136
7	24.4185	.85466	.14534
8	24.2982	.85044	.14956
9	24.1713	.84600	.15400
10	24.0387	.84135	.15865
11	23.9008	.83653	.16347
12	24.7600	.83160	.16840
13	23.6161	.82656	.17344
14	23.4693	.82143	.17857
15	23.3194	.81618	.18382
16	23.1665	.81083	.18917
17	23.0103	.80536	.19464
18	22.5511	.79979	.20021
19	22.6870	.79404	.20596
20	22.5179	.78813	.21187
21	22.3438	.78203	.21797
22	22.1646	.77576	.22424
23	21.9801	.76930	.23070
24	21.7902	.76256	.23734
25	21.5950	.75582	.24418
26	21.3942	.74880	.25120
27	21.1878	.74157	.25843
28	20.9750	.73416	.26584
29	20.7581	.72653	.23734
30	20.5345	.71871	.28129
31	20.3052	.71068	.28932
32	20.0899	.70245	.29755
33	19.8285	.69401	.30599
34	19.5816	.68536	.31464
35	19.3285	.67650	.32350
36	19.0695	.66743	.33257
37	18.8044	.65.743	.34185
38	18.5334	.64867	.35133
39	18.2565	.63898	.36102
40	17.9738	.62908	.37092
41	17.6853	.61899	.38101
42	17.3911	.60869	.39131
43	17.0913	.59820	.40180
44	16.7860	.56751	.41249
45	16.4754	.57664	.42336
46	16.1596	.56539	.43441
47	15.8388	.55436	.44564
48	15.5133	.54297	.45703
49	15.1831	.53141	.46859
50	14.8486	.51970	.48030
51	14.5101	.50785	.49215
52	14.1678	.49587	.50413
53	13.8221	.48377	.51623
54	13.4734	.47157	.52843
55	13.1218	.45926	.54074
56	12.7679	.44688	.55312
57	11.4120	.43442	.56558
58	12.0546	.42191	.57809
59	11.6980	.40936	.59064
60	11.3389	.39579	.60321
61	10.9776	.38422	.61578
62	10.6186	.37165	.62835
63	10.2604	.35911	.54089
64	9.9036	.34663	.65337
65	9.5486	.33420	.66580
66	9.1960	.33420	.66580
67	8.8464	.30962	.69038
68	8.5001	.29750	.70250
69	8.1578	.28552	.71448
70	7.8200	.27370	.72530
71	7.4671	.26905	.73795
72	7.1597	.25059	.74941
73	5.8382	.23934	.75055
74	6.5231	.22831	.77169
75	6.2148	.21752	.78248
76	5.9137	.20698	.79302
77	5.6201	.19670	.80330
78	5.3345	.18671	.81329
79	5.0572	.17700	.82300
80	4.7884	.16759	.83241
81	4.5283	.15849	.84151
82	4.2771	.14970	.85030
83	4.0351	.14123	.85877
84	3.8023	.13308	.86692
85	3.5789	.12526	.87474
86	3.3648	.11777	.88223
87	3.1601	.11060	.89940
88	2.9548	.10377	.89623
89	2.7786	.09726	.90274
90	2.6019	.09107	.90893
91	2.4342	.08520	.91480
92	2.2754	.07964	.92035
93	2.1254	.07439	.92561
94	1.9839	.06944	.93056
95	1.8507	.06477	.93523
96	1.7236	.06040	.93960
97	1.8082	.05629	.94371
98	1.4982	.05244	.94756
99	1.3949	.04882	.95118
100	1.2973	.04541	.95459
101	1.2033	.04212	.95788
102	1.1078	.02877	.96123
103	.9973	.03491	.96509
104	.8318	.02911	.97089
105	.4831	.01691	.96309

(b) United States Life Tables and Actuarial Tables 1939-1941, Table 38, published by the Bureau of the Census of the United States Department of Commerce with interest at 3 1/2 percent per annum showing present value of an annuity for a term certain, income for a term certain and of a remainder interest postponed for a term certain.

(Effective as to gifts made on or after November 10, 1969, and before January 1, 1975.)

TABLE D

Table showing the present worth at 3 1/2 percent of an annuity for a term certain, of an income interest for a term certain, and of a remainder interest postponed for a term certain

1	2	3	4
Number of Years	Annuity	Term Certain	Remainder
1	0.9662	.033816	.966184
2	1.8997	.066489	.933511
3	2.8016	.098057	.901943
4	3.6731	.126558	.871442
5	4.5151	.158027	.841973
6	5.3285	.186499	.813501
7	6.1145	.214009	.785991
8	6.8740	.240588	.759412
9	7.6077	.266269	.733731
10	8.3166	.291081	.708919
11	9.0016	.315054	.684946
12	9.6633	.338217	.661783
13	10.327	.360595	.639404
14	10.9205	.382218	.617782
15	11.5174	.403109	.596891
16	12.0941	.423294	.576706
17	12.6513	.442796	.557204
18	13.1897	.451639	.538361
19	13.7096	.479844	.520156
20	14.2124	.497434	.502566
21	14.6980	.514429	.485571
22	15.1671	.530849	.469151
23	15.6204	.546717	.453286
24	16.0584	.562043	.437957
25	16.4815	.576853	.423147
26	16.8904	.591162	.408838
27	17.2854	.604988	.395012
28	17.6670	.618346	.391654
29	18.0358	.631252	.368748
30	18.3920	.643722	.356278

(c) Adjustment Factors for Annuities Payable at Regular Intervals of Less Than One Year. If a life annuity or an annuity certain is payable at the end of semiannual, quarterly, bimonthly, monthly or weekly periods, the following adjustment factors should be used:

Semiannual.	1.0087
Quarterly.	1.0130
Bimonthly.	1.0145
Monthly.	1.0159
Weekly.	1.0171

If an annuity for a term certain is payable at the beginning of the annual or other payment period, the following adjustment factors should be used:

Annual.	1.0350
Semiannual.	1.0262
Quarterly.	1.0218
Bimonthly.	1.0203
Monthly.	1.0189
Weekly.	1.0177

However, a provision that the income from property is to be paid in semiannual, quarterly, bimonthly, monthly or weekly installments does not affect the value to be assigned to the life interest.

NOTE: Reference: Section 15552, Revenue and Taxation Code.

Cal. Code Regs. Tit. 18, § 15552.9