Mortality Table Transition Periods

[Kathleen Reynolds]

#4575

For Transfer Dates on or After 1/1/2021: The regulations provide certain rules to facilitate the transition to the new actuarial tables. For gift tax purposes, if the date of a transfer is on or after January 1, 2021, and before the applicability date of the Treasury decision adopting these regulations as final regulations, the donor may choose to determine the value of the gift (and/or any applicable charitable deduction) under tables based on either Table 2000CM or Table 2010CM. Similarly, for estate tax purposes, if the decedent dies on or after January 1, 2021, and before the applicability date of the Treasury decision adopting these regulations as final regulations, the value of any interest (and/or any applicable charitable deduction) may be determined in the discretion of the decedent’s executor under tables based on either Table 2000CM or Table 2010CM, provided that the decedent’s executor must use the same mortality table to value all interests in the same property. However, the section 7520 interest rate to be utilized is the appropriate rate for the month in which the valuation date occurs, subject to the following special rule for certain charitable transfers. Specifically, in accordance with this transitional rule and the rules contained in §§1.7520-2(a)(2), 20.7520-2(a)(2), and 25.7520-2(a)(2), in cases involving a charitable deduction, if the valuation date occurs on or after January 1, 2021, but before the applicability date of the Treasury decision adopting these regulations as final regulations, and the executor or donor elects under section 7520(a) to use the section 7520 interest rate for a month that is prior to January 1, 2021, then the mortality experience contained in Table 2000CM must be used. If the executor or donor uses the section 7520 interest rate for a month that is on or after January 1, 2021, but before the applicability date of the Treasury decision adopting these regulations as final regulations, then the tables based on either Table 2000CM or Table 2010CM may be used. However, if the valuation date occurs on or after the applicability date of the Treasury decision adopting these regulations as final regulations, the executor or donor must use the new mortality experience contained in Table 2010CM even if the use of a prior month’s interest rate is elected under section 7520(a).

For Transfer Dates in May or June of 2009, you have the choice of using mortality Table 90CM or 2000CM. After June 2009 (and before 1/1/2021), the program will automatically use Table 2000CM. If the interest rate used for a May 2009 transfer is from April or March or if a June transfer uses the rate from April, then the program will use table 90CM and there will not be an option to select between the two.

For Transfer Dates in May or June of 1999, you have the choice of using mortality Table 80CNSMT or Table 90CM. After June 1999 (and before 5/1/2009), the program will automatically use Table 90CM. If the interest rate used for a May 2009 transfer is from April or March or if a June transfer uses the rate from April, then the program will use table 80CNSMT and there will not be an option to select between the two.

For Transfer Dates after April 1989 and before May 1999, there was no transition period and Table 80CNSMT is used.

For dates before May 1989, the program uses Table LN from Treas. Reg. section 20.2031-7A(d)(6).

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