KPMG has made available for download their article, “Proposed Regulations: Updated Actuarial Tables for Valuing Annuities, Terms of Years, and Remainder Interests”, which discusses the Federal Register Proposed Regulations. The abstract is as follows:
The U.S. Treasury Department and IRS today released for publication in the Federal Register proposed regulations (REG-122770-18) relating to the use of actuarial tables in valuing annuities, interests for life or a term of years, and remainder or reversionary interests.
The proposed regulations [PDF 1.53 MB] (43 pages as published in the Federal Register on May 5, 2022) are proposed to apply in the case of annuities, interests for life or a term of years, and remainder or reversionary interests that are valued as of a date on or after the first day of the month following the date on which these regulations are published as final regulations in the Federal Register.
The proposed regulations will affect the valuation of inter vivos and testamentary transfers of interests dependent on one or more measuring lives. The regulations are necessary because applicable law requires the actuarial tables to be updated to reflect the most recent mortality experience available. The regulations include rules to facilitate the transition to the new actuarial tables.
Comments and requests for a public hearing must be received by July 5, 2022.
Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.
Wealth Strategies Journal 