California Code of Regulations
Title 18 - Public Revenues
Division 2.5 - State Controller
Chapter 2 - Gift Tax
Article 5 - Valuation
Section 15552.9 - Gifts Made on or After November 10, 1969 and Before January 1, 1975

Universal Citation: 18 CA Code of Regs 15552.9

Current through Register 2024 Notice Reg. No. 12, March 22, 2024

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 ½ 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 ½ percent of the appraised value of the property upon which the estate, income or interest was based.

A single life annuity table of 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 below as Table C. The present value or worth of 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 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 ½ 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 ½ 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 ½ 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 ½ 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.

Disclaimer: These regulations may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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