Instructions for REV-1514 Schedule K
REV-1514 EX (02-15)                                                    Life Estate, Annuity & Term Certain

GENERAL INFORMATIONdisposition or inter-vivos transfer didFor any other type of calculation a fee
                                  not allow for the disposition of assetsis applied for private letter valuations
PURPOSE OF SCHEDULEoutright at the time of death butthat involve an actuarial calculation.
                                  allowed for their limited distribution toThis fee is similar to that charged by
Use REV-1514 Schedule K to report all
presently vested life estates, annuitiesa beneficiary for the duration of thevenuethe InternalServiceRefor
and terms certain created by thebeneficiary’s life or allowed for disposi-private letter rulings which involve an
decedent for which valuations must betion over a specific term of years, it isactuarial calculation, and is a result of
actuarially determined.a taxable transfer.                                the increase in requests due to rate
                                                                          changes in the 1995 amendments to
                                          Do not use this schedule if the
                                                                          the PA Inheritance and Estate Tax Act.
   FORM INSTRUCTIONSbeneficiary has elected a 5 per-
                                                                          The fee must be paid by a certified
                                  cent or $5,000 option or if the surviving
                                                                          form of payment prior to the issuance
Estate of                         spouse plans to invade the principal of
Enter the complete name of the estatethe trust.                           of the valuation. Acceptable forms of
                                                                          payment are a money order, bank
as shown on REV-1500, Pennsylvania
                                  For decedents dying on or after
Inheritance Tax Return.                                                   draft, or certified check made payable
                                  Dec. 13, 1982, the valuation methodsto the PA Department of Revenue.
File Number                       are the same as described in U.S.Personal or business account checks
Enter the file number of the estateTreasury Department regulations. Thewill not be accepted.
assigned by the Register of Wills asactuarial tables used for dates of death
shown on REV-1500, Pennsylvaniaon or after May 1, 1989, can be foundThe department should be contacted at
Inheritance Tax Return.in IRS Publication 1457, Actuarialleast three weeks in advance of the
                                  Tables.                                 date needed to request a written 
                                                                          valuation. The calculation and written
GENERAL INSTRUCTIONSThe actuarial tables used for dates ofvaluation will be mailed to the estate
                                  death on or after May 1, 2000, can berepresentative. To speak to a Trust 
Life Estate Interest Calculationfound in IRS Publication 1457, ActuarialValuation Specialist call 717-787-8327.
The asset(s) subject to the annuity orTables, Aleph and Beth Volumes.  TheRequests should be mailed to:
life estate calculation must be includedpresent value of an annuity or life
in the asset schedules (A through G)estateatwhich is dependent on the           PA DEPARTMENT OF REVENUE
the full date of death value.continuation or termination of the lifeINHERITANCE TAX DIVISION
The description of the trust, propertyof only one person or the present valueSPECIALTY TAX UNIT
interest or other arrangement to beof an annuity or income interest whichPO BOX 280601
valued must include the name, date ofis payable for a term certain will beHARRISBURG, PA 17128-0601
birth, and age of each beneficiary todetermined using tables which incorpo-The request must be accompanied by
enable the Department of Revenue torate an interest rate equal to 120 per-
                                                                          a statement including the dates of birth
readily identify the property interestcent of the federal midterm annual rate
                                                                          of each person, the duration of whose
to be valued with reference to thein effect for the month in which the
                                                                          life may affect the value of the interest,
governing instrument.date of death occurred. For purposes of
                                                                          and copies of the relevant instruments.
                                  the computation, the age of the life
                                                                          For charitable remainder unitrusts and
Annuity Interest Calculationtenant used is his or her age on the
                                                                          pooled income funds, the factor to
If the interest to be valued is the rightbirthday nearest to the date of death.
to receive the income or annuity for a                                    calculate the interest of a beneficiary is
term certain rather than the life of aThe Department of Revenue will providecalculated in accordance with the
person, include the number of years.single life estate factors by telephonemethods described in U.S. Treasury
If the decedent, by testamentary  free of charge.                         Department regulations.

www.revenue.pa.gov                                                                                        1