IRS Actuarial Tables

Actuarial tables are exceptionally useful in advanced estate planning. The tables provide a uniform and standardized method of calculating the interest factors of mortality and rates of return, establishing a normal life expectancy. The tables allow for projections into the future, which would otherwise be based upon unknown factors and impossible to determine.

Additionally, the Actuarial Tables assume a reciprocal discount and compounding rate equivalent to the IRS Code Section 7520 valuation tables, which provides prescribed interest rates and mortality tables for use in specified circumstances.

The 7520 rate as of May 2006 was 5.8 percent.

For individuals not likely to attain the "normal life expectancy" age, the tables are used to reduce their estate tax. Using sophisticated strategies also uses the normal life expectancy to enhance gifting or estate tax reduction, whether or not normal life expectancy is expected to be attained.

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