Cal. Code Regs. tit. 18 § 13952.7
The present worth of a remainder is obtained by computing the present worth of the precedent estate or estates and subtracting the amount thereof from the total value of the property involved. The difference will represent the present worth of the remainder.
The present worth of a remainder interest after a life estate may also be obtained by multiplying the appraised value of the subject property by the remainder factor in Table A(1) or Table A(2), whichever is appropriate, of Section 13953 opposite the age of the person possessing the precedent estate. This regulation may be illustrated by the following examples:
EXAMPLE.
A bequeaths the annual income from $100,000 to B for life with remainder over to C. B, a male, at the time of A's death is 40 years of age. By an application of the method set forth in Section 13952.1 for determining the present value of a life estate, B's life interest is found to be $78,923. This latter sum subtracted from $100,000 results in a difference of $21,077, the present value of C's remainder.
EXAMPLE.
Using the same facts as set forth in example immediately above, the remainder factor for a male 40 years of age (the age of the lifetenant) is .21077. The present value of C's remainder interest is $21,077 ($100,000 x .21077).
NOTE: Reference: Section 13952, Revenue and Taxation Code.
Cal. Code Regs. Tit. 18, § 13952.7