The IRS issued new Table 90CM to replace Life Table 80CNSMT effective 5/1/99. Transition rules apply for estate, gift and charitable cases in May and June. Brentmark has released updates for Estate Planning Tools and Charitable Financial Planner to include the new table for life estate, remainder and annuity calculations. The Pension & Roth IRA Analyzer was updated to add the new table to the pre-59½ part of the program where you have the option to select different tables.
Note: Table 90CM generally results in lower taxable gifts for GRATs and lower charitable deductions for Charitable Remainder Annuity Trusts. Use of Table 90CM in May and June was optional. Its use starting 7/1/99 is mandatory.
The Government Printing Office (202-512-1800), released the new Actuarial Values publications in early November, 1999 (1457, Book Aleph, $65; 1458, Book Beth, $64; 1459, Book Gimel, $12).
Note: The IRS issued a correction to IRS Publication 1458 with Notice 1261. Table Z (remainder interests in unitrusts payable for the shorter or one life or a term of years) was incorrect. No Brentmark programs had any such problem as the unitrust remainder factors are calculated with commutation factors, not with Table Z.
The new table was implemented in the following Brentmark programs:
Pension & Roth IRA Analyzer v. 5.10 was released 5/4/99. Table 90CM affected the pre-59½ part of the program only.
Estate Planning Tools 1999.20 was released 5/10/99.
Charitable Financial Planner v. 1999.10 was released 5/11/99. The update included both the life expectancy table changes and new recommended rates for gift annuities.
Pension Distributions Calculator v. 4.00 was released on 7/16/99. Table 90CM affected the pre-59½ part of the program only.
IRS Factors Calculator v. 5.00 (new version for Windows) was released on 7/14/99.
Final and Temporary Regulations with Tables (T.D. 8819) (Very large:436K)
Proposed Regulations (REG-103851-99)
An excellent article, Harnessing the Valuation Nightmare, by Daniel B. Evans and Stephan R. Leimberg, discusses the consequences of the new valuation table. The article is available at this site.
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