Retained Interest

Depending on the type of trust you selected, the program uses the values entered in Asset to Gift, Trust Term, Annual Annuity/Percent of Annual Balance, and IRC Sec 7520 rate to determine the retained interest. Enter the amount to use for retained interest if you do not want to use the value that the program calculated.

The program calculates the retained interest based on the income stream that the client is to receive from the trust. Remember that the retained interest plus the taxable transfer must equal the market value of the asset. The taxable transfer is the amount remaining after the program subtracts the retained interest from the market value.