California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 6 - Valuation › Section 13952 - Limited Estates, Future Estates, Contingent Estates, Annuities (Other than Annuity Contracts)-in General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
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 the transferor's death. In this
					 connection, the Inheritance Tax Law specifically provides that such present
					 value or worth is to be determined in accordance with the standards of
					 mortality and values set forth in the United States Life Tables: 1959-1961,
					 published by the United States Department of Health, Education and Welfare,
					 Public Health Service, and the rate of interest used in computing the present
					 value of the estate, income or interest is 6 percent per annum compounded
					 annually. In determining the present value or worth as of the date of the
					 transferor's death 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, is
					 considered equivalent to 6 percent of the appraised value of the property upon
					 which the estate, income or interest is based.
A single life annuity table at 6 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 male person of a specified
					 age and of $1 due at the death of a male person of a specified age,
					 respectively, is set forth in Section
					 13953 as Table A(1). Table A(2)
					 shows the present value or worth at 6 percent of an annuity, life estate and a
					 remainder interest of $1 due at the end of each year during the life of a
					 female person of a specified age and the present value or worth of $1 due at
					 the death of a female person of a specified age, respectively. The present
					 value or worth at 6 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 in Section
					 13953 as Table B.
In the case of a transfer of the character above set forth
					 made by a transferor dying on or after November 10, 1969, but prior to January
					 1, 1975, the present value or worth thereof is to be determined by 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 ½ percent per annum compounded annually. In such a case
					 the yearly income or annual value of the use or income of an estate or interest
					 is 3 ½ percent of the appraised value of the property upon which the
					 estate or interest is based.
A single life annuity table at 3 ½ 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 in Section
					 13953.1 as Table C. The present
					 value or worth at 3 ½ 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 in Section
					 13953.1 as Table D.
In the case of a transfer of the character above set forth
					 made by a transferor dying on or after July 1, 1945, but prior to November 10,
					 1969, the present value or worth thereof is to be determined by the Actuaries
					 Combined Experience Tables of Mortality, save that the rate of interest used
					 shall be 4 percent per annum; and, the yearly income or annual value of the use
					 or income of an estate or interest is 4 percent of the appraised value of the
					 property upon which the estate or interest is based.
In a case of a transfer of the character above set forth
					 made by a transferor dying prior to July 1, 1945, the value thereof is to be
					 determined by the Actuaries Combined Experience Tables of Mortality, save that
					 the rate of interest used shall be 5 percent per annum; and, the yearly income
					 or annual value of the use or income of an estate or interest is 5 percent of
					 the appraised value of the property upon which the estate or interest is
					 based.
It is assumed in the illustrative computations which follow
					 that the transfer was made on or after January 1, 1975, and the 6 percent
					 tables are therefore used.
CAUTION:
Tables A(1), A(2) and B, contained in
					 Section 13953 are to be used to value
					 interest in property for decedents dying on or after January 1, 1975. Tables C
					 and D, contained in Section
					 13953.1, are to be used to value
					 interest in property for decedents dying on or after November 10, 1969, but
					 prior to January 1, 1975. Care should be taken to refer to the correct table in
					 each case.
NOTE: Reference: Section
					 13952,
					 Revenue and Taxation Code.