20.2031-7—Valuation of annuities, interests for life or term of years, and remainder or reversionary interests.

(a) In general. Except as otherwise provided in paragraph (b) of this section and § 20.7520-3(b) (pertaining to certain limitations on the use of prescribed tables), the fair market value of annuities, life estates, terms of years, remainders, and reversionary interests for estates of decedents is the present value of such interests, determined under paragraph (d) of this section. The regulations in this and in related sections provide tables with standard actuarial factors and examples that illustrate how to use the tables to compute the present value of ordinary annuity, life, and remainder interests in property. These sections also refer to standard and special actuarial factors that may be necessary to compute the present value of similar interests in more unusual fact situations.
(b) Commercial annuities and insurance contracts. The value of annuities issued by companies regularly engaged in their sale, and of insurance policies on the lives of persons other than the decedent, is determined under § 20.2031-8. See § 20.2042-1 with respect to insurance policies on the decedent's life.
(c) [Reserved] For further guidance, see § 20.2031-7T(c) through (d)(5).
(d) (1) through (5) [Reserved] For further guidance, see § 20.2031-7T(c) through (d)(5).
(6) Actuarial Table B, Table J, and Table K where the valuation date is after April 30, 1989. Except as provided in § 20.7520-3(b) (pertaining to certain limitations on prescribed tables), for determination of the present value of an interest that is dependent on a term of years, the tables in this paragraph (d)(6) must be used in the application of the provisions of this section when the section 7520 interest rate component is between 4.2 and 14 percent.
Table B—Term Certain Remainder Factors Applicable After April 30, 1989
Years Interest rate
4.2% 4.4% 4.6% 4.8% 5.0% 5.2% 5.4% 5.6% 5.8% 6.0%
1 .959693 .957854 .956023 .954198 .952381 .950570 .948767 .946970 .945180 .943396
2 .921010 .917485 .913980 .910495 .907029 .903584 .900158 .896752 .893364 .889996
3 .883887 .878817 .873786 .868793 .863838 .858920 .854040 .849197 .844390 .839619
4 .848260 .841779 .835359 .829001 .822702 .816464 .810285 .804163 .798100 .792094
5 .814069 .806302 .798623 .791031 .783526 .776106 .768771 .761518 .754348 .747258
6 .781257 .772320 .763501 .754801 .746215 .737744 .729384 .721135 .712994 .704961
7 .749766 .739770 .729925 .720230 .710681 .701277 .692015 .682893 .673908 .665057
8 .719545 .708592 .697825 .687242 .676839 .666613 .656561 .646679 .636964 .627412
9 .690543 .678728 .667137 .655765 .644609 .633663 .622923 .612385 .602045 .591898
10 .662709 .650122 .637798 .625730 .613913 .602341 .591009 .579910 .569041 .558395
11 .635997 .622722 .609750 .597071 .584679 .572568 .560729 .549157 .537846 .526788
12 .610362 .596477 .582935 .569724 .556837 .544266 .532001 .520035 .508361 .496969
13 .585760 .571339 .557299 .543630 .530321 .517363 .504745 .492458 .480492 .468839
14 .562150 .547259 .532790 .518731 .505068 .491790 .478885 .466343 .454151 .442301
15 .539491 .524195 .509360 .494972 .481017 .467481 .454350 .441612 .429255 .417265
16 .517746 .502102 .486960 .472302 .458112 .444374 .431072 .418194 .405723 .393646
17 .496877 .480941 .465545 .450670 .436297 .422408 .408987 .396017 .383481 .371364
18 .476849 .460671 .445071 .430028 .415521 .401529 .388033 .375016 .362458 .350344
Code of Federal Regulations 266
19 .457629 .441256 .425498 .410332 .395734 .381681 .368153 .355129 .342588 .330513
20 .439183 .422659 .406786 .391538 .376889 .362815 .349291 .336296 .323807 .311805
21 .421481 .404846 .388897 .373605 .358942 .344881 .331396 .318462 .306056 .294155
22 .404492 .387783 .371794 .356494 .341850 .327834 .314417 .301574 .289278 .277505
23 .388188 .371440 .355444 .340166 .325571 .311629 .298309 .285581 .273420 .261797
24 .372542 .355785 .339813 .324586 .310068 .296225 .283025 .270437 .258431 .246979
25 .357526 .340791 .324869 .309719 .295303 .281583 .268525 .256096 .244263 .232999
26 .343115 .326428 .310582 .295533 .281241 .267664 .254768 .242515 .230873 .219810
27 .329285 .312670 .296923 .281998 .267848 .254434 .241715 .229654 .218216 .207368
28 .316012 .299493 .283866 .269082 .255094 .241857 .229331 .217475 .206253 .195630
29 .303275 .286870 .271382 .256757 .242946 .229902 .217582 .205943 .194947 .184557
30 .291051 .274780 .259447 .244997 .231377 .218538 .206434 .195021 .184260 .174110
31 .279319 .263199 .248038 .233776 .220359 .207736 .195858 .184679 .174158 .164255
32 .268061 .252106 .237130 .223069 .209866 .197468 .185823 .174886 .164611 .154957
33 .257256 .241481 .226702 .212852 .199873 .187707 .176303 .165612 .155587 .146186
34 .246887 .231304 .216732 .203103 .190355 .178429 .167270 .156829 .147058 .137912
35 .236935 .221556 .207201 .193801 .181290 .169609 .158701 .148512 .138996 .130105
36 .227385 .212218 .198089 .184924 .172657 .161225 .150570 .140637 .131376 .122741
37 .218220 .203274 .189377 .176454 .164436 .153256 .142856 .133179 .124174 .115793
38 .209424 .194707 .181049 .168373 .156605 .145681 .135537 .126116 .117367 .109239
39 .200983 .186501 .173087 .160661 .149148 .138480 .128593 .119428 .110933 .103056
40 .192882 .178641 .165475 .153302 .142046 .131635 .122004 .113095 .104851 .097222
41 .185107 .171112 .158198 .146281 .135282 .125128 .115754 .107098 .099103 .091719
42 .177646 .163900 .151241 .139581 .128840 .118943 .109823 .101418 .093670 .086527
43 .170486 .156992 .144590 .133188 .122704 .113064 .104197 .096040 .088535 .081630
44 .163614 .150376 .138231 .127088 .116861 .107475 .098858 .090947 .083682 .077009
45 .157019 .144038 .132152 .121267 .111297 .102163 .093793 .086124 .079094 .072650
46 .150690 .137968 .126340 .115713 .105997 .097113 .088988 .081557 .074758 .068538
47 .144616 .132153 .120784 .110413 .100949 .092312 .084429 .077232 .070660 .064658
48 .138787 .126583 .115473 .105356 .096142 .087749 .080103 .073136 .066786 .060998
49 .133193 .121248 .110395 .100530 .091564 .083412 .075999 .069258 .063125 .057546
50 .127824 .116138 .105540 .095926 .087204 .079289 .072106 .065585 .059665 .054288
51 .122672 .111243 .100898 .091532 .083051 .075370 .068411 .062107 .056394 .051215
52 .117728 .106555 .096461 .087340 .079096 .071644 .064907 .058813 .053302 .048316
53 .112982 .102064 .092219 .083340 .075330 .068103 .061581 .055695 .050380 .045582
54 .108428 .097763 .088164 .079523 .071743 .064737 .058426 .052741 .047618 .043001
55 .104058 .093642 .084286 .075880 .068326 .061537 .055433 .049944 .045008 .040567
56 .099864 .089696 .080580 .072405 .065073 .058495 .052593 .047296 .042541 .038271
57 .095839 .085916 .077036 .069089 .061974 .055604 .049898 .044787 .040208 .036105
58 .091976 .082295 .073648 .065924 .059023 .052855 .047342 .042412 .038004 .034061
59 .088268 .078826 .070409 .062905 .056212 .050243 .044916 .040163 .035921 .032133
60 .084710 .075504 .067313 .060024 .053536 .047759 .042615 .038033 .033952 .030314
Table B—Term Certain Remainder Factors Applicable After April 30, 1989




Years Interest rate
6.2% 6.4% 6.6% 6.8% 7.0% 7.2% 7.4% 7.6% 7.8% 8.0%
1 .941620 .939850 .938086 .936330 .934579 .932836 .931099 .929368 .927644 .925926
2 .886647 .883317 .880006 .876713 .873439 .870183 .866945 .863725 .860523 .857339
3 .834885 .830185 .825521 .820892 .816298 .811738 .807211 .802718 .798259 .793832
4 .786144 .780249 .774410 .768626 .762895 .757218 .751593 .746021 .740500 .735030
5 .740248 .733317 .726464 .719687 .712986 .706360 .699808 .693328 .686920 .680583
6 .697032 .689208 .681486 .673864 .666342 .658918 .651590 .644357 .637217 .630170
7 .656339 .647752 .639292 .630959 .622750 .614662 .606694 .598845 .591111 .583490
8 .618022 .608789 .599711 .590786 .582009 .573379 .564892 .556547 .548340 .540269
9 .581942 .572170 .562581 .553170 .543934 .534868 .525971 .517237 .508664 .500249
10 .547968 .537754 .527750 .517950 .508349 .498944 .489731 .480704 .471859 .463193
11 .515977 .505408 .495075 .484972 .475093 .465433 .455987 .446750 .437717 .428883
12 .485854 .475007 .464423 .454093 .444012 .434173 .424569 .415196 .406046 .397114
13 .457490 .446436 .435669 .425181 .414964 .405012 .395316 .385870 .376666 .367698
14 .430781 .419582 .408695 .398109 .387817 .377810 .368078 .358615 .349412 .340461
15 .405632 .394344 .383391 .372762 .362446 .352434 .342717 .333285 .324130 .315242
16 .381951 .370624 .359654 .349028 .338735 .328763 .319103 .309745 .300677 .291890
17 .359653 .348331 .337386 .326805 .316574 .306682 .297117 .287867 .278921 .270269
18 .338656 .327379 .316498 .305997 .295864 .286084 .276645 .267534 .258739 .250249
19 .318885 .307687 .296902 .286514 .276508 .266870 .257584 .248638 .240018 .231712
20 .300268 .289179 .278520 .268272 .258419 .248946 .239836 .231076 .222651 .214548
21 .282739 .271785 .261276 .251191 .241513 .232225 .223311 .214755 .206541 .198656
Code of Federal Regulations 267
22 .266232 .255437 .245099 .235197 .225713 .216628 .207925 .199586 .191596 .183941
23 .250689 .240073 .229924 .220222 .210947 .202078 .193598 .185489 .177733 .170315
24 .236054 .225632 .215689 .206201 .197147 .188506 .180259 .172387 .164873 .157699
25 .222273 .212060 .202334 .193072 .184249 .175845 .167839 .160211 .152943 .146018
26 .209297 .199305 .189807 .180779 .172195 .164035 .156275 .148895 .141877 .135202
27 .197078 .187317 .178056 .169269 .160930 .153017 .145507 .138379 .131611 .125187
28 .185572 .176049 .167031 .158491 .150402 .142740 .135482 .128605 .122088 .115914
29 .174739 .165460 .156690 .148400 .140563 .133153 .126147 .119521 .113255 .107328
30 .164537 .155507 .146989 .138951 .131367 .124210 .117455 .111079 .105060 .099377
31 .154932 .146154 .137888 .130104 .122773 .115868 .109362 .103233 .097458 .092016
32 .145887 .137362 .129351 .121820 .114741 .108085 .101827 .095942 .090406 .085200
33 .137370 .129100 .121342 .114064 .107235 .100826 .094811 .089165 .083865 .078889
34 .129350 .121335 .113830 .106802 .100219 .094054 .088278 .082867 .077797 .073045
35 .121798 .114036 .106782 .100001 .093663 .087737 .082196 .077014 .072168 .067635
36 .114688 .107177 .100171 .093634 .087535 .081844 .076532 .071574 .066946 .062625
37 .107992 .100730 .093969 .087673 .081809 .076347 .071259 .066519 .062102 .057986
38 .101688 .094671 .088151 .082090 .076457 .071219 .066349 .061821 .057609 .053690
39 .095751 .088977 .082693 .076864 .071455 .066436 .061778 .057454 .053440 .049713
40 .090161 .083625 .077573 .071970 .066780 .061974 .057521 .053396 .049573 .046031
41 .084897 .078595 .072770 .067387 .062412 .057811 .053558 .049625 .045987 .042621
42 .079941 .073867 .068265 .063097 .058329 .053929 .049868 .046120 .042659 .039464
43 .075274 .069424 .064038 .059079 .054513 .050307 .046432 .042862 .039572 .036541
44 .070880 .065248 .060074 .055318 .050946 .046928 .043233 .039835 .036709 .033834
45 .066742 .061323 .056354 .051796 .047613 .043776 .040254 .037021 .034053 .031328
46 .062845 .057635 .052865 .048498 .044499 .040836 .037480 .034406 .031589 .029007
47 .059176 .054168 .049592 .045410 .041587 .038093 .034898 .031976 .029303 .026859
48 .055722 .050910 .046522 .042519 .038867 .035535 .032493 .029717 .027183 .024869
49 .052469 .047848 .043641 .039812 .036324 .033148 .030255 .027618 .025216 .023027
50 .049405 .044970 .040939 .037277 .033948 .030922 .028170 .025668 .023392 .021321