Forums Support Library CFP – Charitable Financial Planner Charitable Remainder Annuity Trust §7520 Report


Viewing 0 reply threads
  • Author
    • Kathleen Reynolds
      Post count: 428


      The §7520 Treasury Regulations Exhaustion Test calculates a limit in the valuation of annuities created a Charitable Remainder Annuity Trust. The Charitable Financial Planner shows the steps used to calculate the value of the exhausted annuity by splitting the annuity into two smaller annuities:

      • An annuity that lasts up to but does not include the period when the original annuity exhausts.
      • A single payment equal to the final partial payment of the original annuity.

      The two parts are then added together. The total is the Value for the §7520 Treasury Regulations Exhaustion Test report.

      See the Section 25.7520-3(b)(2)(v) ruling for more information on the exhaustion test.

Viewing 0 reply threads
  • The forum ‘CFP – Charitable Financial Planner’ is closed to new topics and replies.