Life Interest Valuations (including Remainders)

Actuarial valuations of life and remainder interests.

“The present value of the net benefit derived by a named individual
over the term of their lifetime from a specified asset.”

This is typically for a single life and is calculated using gender, age, life tables and market yield. More complicated examples can involve impaired lives, joint lives or last-survivors – and specialist advice is usually required by an actuary.

An example is the proportion of a property assigned to a life tenant for stamp duty or capital gains purposes. These can be used for property transactions, legal purposes to settle disputes, taxation assessments for capital gains or stamp duty or for other Government agencies.

Our written reports will include the following declarations:

“I, [name of actuary] – Fellow of the Institute of Actuaries of Australia, have made all the inquiries that I believe are desirable and appropriate and that no matters of significance that I regard as relevant have, to my knowledge, been withheld. I believe that the facts within my knowledge have been stated in this report are true and the opinions I have expressed in this report are independent and impartial.”

If this is of interest, please complete the online calculator below or provide your details via our contact us page.

Life Interest Valuation - Single Life

for Australia (with Remainder Option)

Page 1 of 2

Name of Person with Life Interest*

Email of Requester*

for delivery of results

Date of Birth* (dd/mm/yyyy)

of person with life interest

Gender*

Female

Male

of person with life interest

Please select the valuation required:*

Life Interest

Remainder Calculation

* also called "life estate"

Valuation Date* (dd/mm/yyyy)

Name of Person with Remainder Interest*

% Share of Life Interest in Property Occupied or Trust

use slider to select approx. % percentage (if required, add specific details in the comments box over)

Please enter property rental or trust income details:-

Gross Rental / Trust Income*

i.e. gross rent otherwise payable

e.g. a 50% life interest share in a property with a market rent of $500 per week would be $250 payable weekly

Share of Expenses Payable*

i.e. agreed total of any council rates, strata levies, water rates payable by life tenant

The values chosen above give a negative result. Please recheck frequency of income and expenses above.

Total Value of Property Occupied or Trust*

occupied by life interest

Net Annual Benefit (p.a.)

Factor - Last Birthday

Factor - Next Birthday

Life Interest Factor - Overall

Age - Whole Years

Age - Next Birthday

Age - In Part

Factor - Last Birthday using Datasource

Factor - Next Birthday using Datasource

Page 2 of 2

Name - Life Interest

of person with life interest

Name - Remainder Interest

of person with remainder interest

Property Address / Trust Name*

of property subject to life interest

Please confirm the following:

Life is not in reasonable health for their age

If selected, please include some notes regarding their health below.

Health Assessment

Final Valuation

Health Comments:

where the relevant life is not in reasonable health.

Additional Comments:

for manual calculations, e.g. joint lives, last survivor, impaired lives etc.

Existing Client Code

Draft Valuation

Order Actuarial Valuation (Fees Apply)This will be a complete assessment based on your (or your client's) specific circumstances. It comes with a signed certificate together with the final value and parameters used. Costs for more involved calculations may vary.

Cost

Submit

Useful Links

Life Tenant Factors – Australian Life Tables 2015-17

ATO Tax Ruling 2006/14: Capital Gains Tax: Consequences of Creating Life and Remainder Interests in Property

Registrar General Guidelines – NSW Land Registry Services – Life Estates

Western Australia – Landgate TFR-06 Life Estates

https://en.wikipedia.org/wiki/Life_estate

Latest Australian Life Tables 2015-17