Probate & Property Magazine

Option 2:

Option 2:       Distribute the account over Bill's and Mary's life

                        expectancies, with recalculation of only Bill's life expectancy.

1. This approach yields a 19 year period for Mary's fixed life expectancy. If

Mary dies in 2008 and Bill dies in 2010, there will be eight more years on

Mary's fixed life expectancy over which the account can be distributed to

their beneficiaries.

2. If Bill is the surviving spouse and lives beyond his expected mortality,

then recalculating his life expectancy will virtually assure that he will

not survive the distribution of the account.

(see number references on chart below)

Recalculating the owner's life expectancy and fixing the life expectancy

of the spouse is the favored approach of many planners, including the

author.

  Bill's Birth Date:                                   08/01/1928

  Beneficiary Type:                                 Bill's spouse, Mary

  Mary's Birth Date:                                05/22/1934

  First Distribution Calendar Year:            1999

  Required Beginning Date:                     04/01/2000

Year

Owner

Age

Beneficiary

Age

Owner

Alive    

Owner  Deceased

1999

71

65

4.385965%

N/A ¬ 1.

2000

72

66

4.694836%

5.263158%

2001

73

67

4.878049%

5.555555%

2002

74

68

5.102041%

5.882353%

2003

75

69

5.319149%

6.250000%

2004

76

70

5.714286%

6.666667%

2005

77

71

5.988024%

7.142857%

2006

78

72

6.493506%

7.692307%

2007

79

73

6.802721%

8.333333%

2008

80

74

7.407407%

9.090909%

2009

81

75

7.812500%

10.000000%

2010

82

76

8.474576%

11.111111%

2011

83

77

9.259259%

12.500000%

2012

84

78

10.101010%

14.285714%

2013

85

79

11.235955%

16.666666%

2014

86

80

12.195122%

20.000000%

2015

87

81

13.888889%

25.000000%

2016

88

82

15.384615%

33.333332%

2017

89

83

17.543859%

50.000000%

2018

90

84

19.607843%

100.000000% ¬ 1

2019

91

85

21.276596%

100.000000%

2020

92

86

22.727272%

100.000000%

2021

93

87

24.390244%

100.000000%

2022

94

88

25.641026%

100.000000%

2023

95

89

27.027027%

100.000000%

2024

96

90

29.411764%

100.000000%

2025

97

91

31.250000%

100.000000%

2026

98

92

33.333332%

100.000000%

2027

99

93

35.714287%

100.000000%

2028

100

94

37.037037%

100.000000%

2029

101

95

40.000000%

100.000000%

2030

102

96

43.478260%

100.000000%

2031

103

97

47.619049%

100.000000%

2032

104

98

52.631580%

100.000000%

2033

105

99

55.555557%

100.000000%

2034

106

100

62.500000%

100.000000%

2035

107

101

71.428574%

100.000000%

2036

108

102

76.923080%

100.000000%

2037

109

103

90.909088%

100.000000%

2038

110

104

100.000000% ¬ 2.

100.000000%

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