Here is some history. Back in 2006, for a reason I can’t recall, I called the IRS and asked for the actuarial value of a joint life estate (both parents were alive). The IRS representative could not answer the question, and asked for a separate computation to be generated. And, sure enough, an attorney from the IRS sent me a letter as follows:
You have requested computation of the actuarial value of a joint life estate vested in life tenants 71 years of age and 72 years of age, per their nearest respective birthdays, on Feb 1, 2006.
…
[1] Obtain the applicable mid-term rate(s) in effect for the month of February, 2006. The applicable IRS Cumulative Bulletin indicates that the applicable rate was 5.2% during that month.
[2] Obtain the applicable factor, based on a 5.2% rate, from the IRS Publication 1457 Table R(2). The remainder factor in this case is .43917. The reciprocal joint life estate factor is .56083.
Now, is this actuarial computation done by the attorney only valid for certain use cases? Do “actuarial value” and “ownership” have different meanings for my question?
Thanks.
@GeorgeM777
