Bill Text: NC S550 | 2011-2012 | Regular Session | Introduced
Bill Title: Life Estate Valuation
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-04-12 - Ref To Com On Finance [S550 Detail]
Download: North_Carolina-2011-S550-Introduced.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
S D
SENATE DRS15126-MH-74 (02/28)
|
Short Title: Life Estate Valuation. |
(Public) |
|
|
Sponsors: |
Senator Hartsell. |
|
|
Referred to: |
|
|
A BILL TO BE ENTITLED
AN ACT to replace an obsolete fixed rate of interest for calculation of life estates with a rate tied to Federal Estate Tax regulations.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 8‑47 reads as rewritten:
"§ 8‑47. Present worth of annuities.
Whenever it is necessary to establish the present worth or cash value of an annuity to a person, payable annually during the person's life, such present worth or cash value may be ascertained by the use of the following table in connection with the mortality tables established by law, the first column representing the number of years the annuity is to run and the second column representing the present cash value of an annuity of one dollar for such number of years, respectively:
No. of Years Annuity Cash Value of the Annuity
is to Run of $1
1 ............................................... $ 0.943
2 ............................................... 1.833
3 ............................................... 2.673
4 ............................................... 3.465
5 ............................................... 4.212
6 ............................................... 4.917
7 ............................................... 5.582
8 ............................................... 6.210
9 ............................................... 6.802
10 ............................................... 7.360
11 ............................................... 7.887
12 ............................................... 8.384
13 ............................................... 8.853
14 ............................................... 9.295
15 ............................................... 9.712
16 ............................................... 10.106
17 ............................................... 10.477
18 ............................................... 10.828
19 ............................................... 11.158
20 ............................................... 11.470
21 ............................................... 11.764
22 ............................................... 12.042
23 ............................................... 12.303
24 ............................................... 12.550
25 ............................................... 12.783
26 ............................................... 13.003
27 ............................................... 13.211
28 ............................................... 13.406
29 ............................................... 13.591
30 ............................................... 13.765
31 ............................................... 13.929
32 ............................................... 14.084
33 ............................................... 14.230
34 ............................................... 14.368
35 ............................................... 14.498
36 ............................................... 14.621
37 ............................................... 14.737
38 ............................................... 14.846
39 ............................................... 14.949
40 ............................................... 15.046
41 ............................................... 15.138
42 ............................................... 15.225
43 ............................................... 15.306
44 ............................................... 15.383
45 ............................................... 15.456
46 ............................................... 15.524
47 ............................................... 15.589
48 ............................................... 15.650
49 ............................................... 15.708
50 ............................................... 15.762
51 ............................................... 15.813
52 ............................................... 15.861
53 ............................................... 15.907
54 ............................................... 15.950
55 ............................................... 15.991
56 ............................................... 16.029
57 ............................................... 16.065
58 ............................................... 16.099
59 ............................................... 16.131
60 ............................................... 16.161
61 ............................................... 16.190
62 ............................................... 16.217
63 ............................................... 16.242
64 ............................................... 16.266
65 ............................................... 16.289
66 ............................................... 16.310
67 ............................................... 16.331
The present cash value of the annuity for a fraction of a
year may be ascertained as follows: Multiply the difference between the cash
value of the annuities for the preceding and succeeding full years by the
fraction of the year in decimals and add the sum to the present cash value for
the preceding full year. When a person is entitled to the use of a sum of
money for life, or for a given time, the interest thereon for one year,
computed at four and one half percent (4 1/2%), may be considered as an annuity
and the present cash value be ascertained as herein provided: Provided, the
interest rate in computing the present cash value of a life interest in land
shall be six percent (6%).
The present value of a legal life estate, including the present cash value of a life interest in land or the entitlement to the use of a sum of money for life, shall be computed by applying the federal estate tax regulations for the calculation of the value of life estates under section 2031 of the Internal Revenue Code of 1986. The federal estate tax regulations applied must be those in force on the date when the costs of the improvement are initially determined by assessment, agreement, or otherwise.
Whenever the mortality tables set out in G.S. 8‑46 are admissible in evidence in any action or proceeding to establish the expectancy of continued life of any person from any period of the person's life, whether the person is living at the time or not, the annuity tables herein set forth shall be evidence, but not conclusive, of the loss of income during the period of life expectancy of the person."
SECTION 2. This act becomes effective January 1, 2012.
