IRS Releases New Mortality Tables Effective May 1, 2009

IRS: Internal Revenue Code Section 7520 requires that the Secretary of the Treasury revise the mortality assumptions underlying the IRS tables at least once every ten years to incorporate the most recently available mortality data. These tables were last updated on May 1, 1999, and new tables have now been issued effective for transactions occurring on or after May 1, 2009.

CRT Impact: A donor's deduction for a contribution to a charitable remainder trust will be less under the new tables.

Q-PERT Impact: A qualified personal residence trust will be adversely affected, primarily because the value of the reversion will fall.

Private Annuity Impact: Private annuities will be favorably affected.