HomeMy WebLinkAbout04-07-79
Hr. Dennis C. Caverly
Senior Vice President and
Trust Officer
Farmers TTIlSt Company
Carlisle, PA 17013
April 4, 1979
Re: Estate of Sarah. M. Jones
File No: 21-78-0442
C01.Ilty of Cunberland
Date of Death: 7/28/78
Dear Mr. Caverly:
This is in reply to your letter dated March 15, 1979, concerning the
valuation of a chari table remainder uni trust established under pangraph
JUJUY - FlRSf of the Will of the above named dec~t and JIDdified by Codicil
dated October 6, 1977.
As you know, the Pennsylvania Depart:nv:mt of Revenue has adopted the
valuation method approved by the Court of Conm:m. Pleas of Hontgomery County,
Orphans' Court Division, in Schoelkopf Estate, 28 Fiduc. Rep. 211. Using
this valuation approach, we nave detennined the factor to co~ute the charitable
exemption applicable to the present unitrust is .274559. This factor,
multiplied by the principal of the unttTUSt (80\ of the residuary estate) is
the charitable exemption and the balance is the amount that is taxable.
The aforementioned factor is based on the tenns of the uni trust assuming
annual payments and assuning each valuation date is at the beginning of the v
taxable year. The calculation was also based on Table 38 of U.S. Life Tables
and Actuarial Tables 1939-1941 and 3~% interest as provided by Permsy1vania law.
Should you have any questions concerning this matter, please feel free
to contact me.
Very truly yours,
Robert L. Schrift
Section Sunervisor
Inheritance Tax Control
Bureau of Field Operations
PJ..S: sra
cc: Richard E. Anderson, Register of Wills
cc: Jo1m. McCrea, Jr., Esquire