(a) The purpose of this subchapter is to establish a simple and accurate method for computing the present value of both vested life and remainder interests in property through the use of actuarial tables and to make the actuarial tables used in connection therewith current. (b) Nothing contained in this subchapter is intended: (1) To […]
In any legal proceeding wherein the court shall decree that a vested right to future income for life from property is to be commuted and an amount payable in gross be substituted for the property right, then the value of the interest shall be computed by use of the table and in the manner described […]
The appropriate age for use in the table is that of the person whose life expectancy serves to measure the life interest being valued.
The court shall determine the interest rate to be used upon the basis of the prevailing interest rates obtainable for investments.
(a) Table: (b) Example: Joe Doe is entitled to receive the income from a principal sum of ten thousand dollars ($10,000) during the life of one Martha Jones, fifty-five (55) years of age. There is a emainder estate in favor of Timothy Doe. In an appropriate proceeding a court in Arkansas has determined that the […]
The present value of a remainder interest is found by subtracting from the principal sum the value of the commuted life interest as determined by this subchapter.
