- 9 - life expectancy of 8.9 years. Mr. Schulte further concluded that it would be appropriate to use a 9-percent interest rate factor in connection with the private annuity arrangement involving decedent, as he believed 9 percent to be a slightly higher interest rate than the prevailing interest rate currently charged on land sale contracts in Arizona. He then consulted a loan amortization table to learn what annual loan payment would have to be made to amortize over 8.9 years a $1,865,500 loan paying 9- percent interest per annum. The amortization table he consulted, however, provided no information with respect to a loan for an 8.9-year term. As a result, Mr. Schulte examined the information the table provided concerning a similar 9-year-term loan. From that information, he computed that an annual loan payment of $311,165 would be required to amortize a $1,865,500 loan over 9 years. Mr. Schulte thus concluded and advised Mr. Shadle that $311,165 should be the annual payment made to decedent by her grandchildren under the private annuity. Decedent, Greg, Janet, Kimberly, and Lori entered into an annuity agreement pursuant to which decedent would convey to each grandchild an undivided one-fourth interest in her four parcels of farmland, in exchange for the four grandchildren's agreeing to pay $311,165 to decedent on September 1 of each year during her life, beginning September 1, 1990. This annuity agreement, which had been drafted by Mr. Shadle, states that the agreement wasPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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