Probate & Property Magazine

Option 3:

Option 3:                   Distribute the account over Bill's and Mary's life

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

1. This approach can usually be dismissed from consideration quickly. If Mary

survives Bill, the example assumes that  spousal rollover would occur.

Recalculating Mary's life expectancy offers no advantage from that

perspective. If one thought Mary might predecease Bill, recalculating

Mary's life expectancy is unwise compared with Options 2 and 4.

2. Bill's fixed life expectancy yields a 15 year period. Therefore, if Mary

dies in 2010 and Bill is the surviving spouse, he will have to fully

distribute the account by 2014.

(see number references on chart below)

  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

Spouse ¬ 1.

Alive

Spouse

Deceased

1999

71

65

4.385965%

N/A

2000

72

66

4.629630%

6.993007% ¬ 2.

2001

73

67

4.807693%

7.518797%

2002

74

68

5.076142%

8.130081%

2003

75

69

5.319149%

8.849558%

2004

76

70

5.617978%

9.708738%

2005

77

71

5.952381%

10.752688%

2006

78

72

6.289308%

12.048193%

2007

79

73

6.666667%

13.698630%

2008

80

74

7.092198%

15.873015%

2009

81

75

7.518797%

18.867924%

2010

82

76

8.064516%

23.255814%

2011

83

77

8.620689%

30.303030%

2012

84

78

9.259259%

43.478260%

2013

85

79

9.900990%

76.923080%

2014

86

80

10.526316%

100.000000% ¬ 2.

2015

87

81

11.235955%

100.000000%

2016

88

82

11.904762%

100.000000%

2017

89

83

12.658228%

100.000000%

2018

90

84

13.513514%

100.000000%

2019

91

85

14.492754%

100.000000%

2020

92

86

15.384615%

100.000000%

2021

93

87

16.393442%

100.000000%

2022

94

88

17.543859%

100.000000%

2023

95

89

18.867924%

100.000000%

2024

96

90

20.000000%

100.000000%

2025

97

91

21.276596%

100.000000%

2026

98

92

22.727272%

100.000000%

2027

99

93

24.390244%

100.000000%

2028

100

94

25.641026%

100.000000%

2029

101

95

27.027027%

100.000000%

2030

102

96

29.411764%

100.000000%

2031

103

97

31.250000%

100.000000%

2032

104

98

33.333332%

100.000000%

2033

105

99

35.714287%

100.000000%

2034

106

100

37.037037%

100.000000%

2035

107

101

40.000000%

100.000000%

2036

108

102

43.478260%

100.000000%

2037

109

103

47.619049%

100.000000%

2038

110

104

52.631580%

100.000000%

2039

111

105

55.555557%

100.000000%

2040

112

106

62.500000%

100.000000%

2041

113

107

71.428574%

100.000000%

2042

114

108

76.923080%

100.000000%

2043

115

109

90.909088%

100.000000%

2044

116

110

100.000000%

100.000000%

 

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