Cal. Code Regs. tit. 18 § 13952.5

Current through Register 2024 Notice Reg. No. 45, November 8, 2024

Section 13952.5 - Deferred Bequest

(a) Bequest Payable at Death of Person Other Than Transferee.

If a bequest is payable to a transferee at the death of another person, the present value of the bequest as of the date of the transferor's death is computed as follows:

(1) Determine the age of the person at whose death the bequest is payable as of his birthday nearest the date of the transferor's death.

(2) Consult Table A(1) or Table A(2), whichever is appropriate, in Section 13953, and ascertain therefrom the remainder factor of $1 due at the death of a person of the same age as a person at whose death the bequest is payable.

(3) Multiply the amount of the bequest by the remainder factor determined pursuant to step (2). The product will represent the present worth of the bequest as of the date of the transferor's death.

The provisions of subdivision (a) may be illustrated by the following example:

EXAMPLE: Decedent bequeaths to A, to be paid at the death of X, a female, property having a value of $60,000 at the decedent's date of death. At the decedent's date of death, X is 70 years of age. By consulting Table A(2), the remainder factor in column 4 opposite 70, the number representing X's age, is .52460. This remainder factor multiplied by the appraised value of the property ($60,000) results in a product of $31,476, the present worth of the bequest to A as of the date of the decedent's death.

(b) Bequest Payable at Specified Time in Future.

The present value of a particular sum of money payable at a future date certain is computed as follows:

(1) Consult Table B in Section 13953, and ascertain therefrom the remainder postponed for a term certain factor of $1 payable at the end of the time specified.

(2) Multiply the factor obtained pursuant to step (1) by the amount of the sum payable. The product will be the present worth, as of the date of the transferor's death, of the sum payable at the end of the specified time. The provisions of subdivision (b) may be illustrated by the following example:

EXAMPLE.

Decedent bequeaths to A $10,000 to be paid at the end of five years from the date of his death. By consulting Table B, the factor for remainder postponed for a term certain in column 4 opposite 5 in column 1, representing the number of years at the end of which the bequest is to be paid, is found to be .747258. The factor multiplied by $10,000 results in a product of $7,473, the present value of the bequest as of the date of the decedent's death.

NOTE: Reference: Section 13952, Revenue and Taxation Code.

Cal. Code Regs. Tit. 18, § 13952.5