Support & Actuarial Knowledge Base

📈 What is the IRS § 7520 discount rate and how is it used?

Internal Revenue Code § 7520 requires that the actuarial value of any life estate, annuity, or remainder interest be determined using an interest rate equal to 120% of the applicable federal midterm rate in effect for the month in which the valuation occurs. LifeEstateCalc allows you to select the exact monthly § 7520 rate published by the IRS to ensure strict audit-proof compliance with Treasury Reg. § 20.2031-7.

⚖️ How does the App calculate Life Tenant vs. Remainder factors?

Using the official IRS Table S (Single Life Remainder Factors) and decennial Table 2010CM mortality curves, LifeEstateCalc evaluates the tenant's exact age (nearest birthday rule). The Remainder factor ($R$) is computed based on the § 7520 interest rate. The Life Tenant factor ($L$) is deduced from unity ($L = 1.0 - R$). Apportionment of the property's Fair Market Value is determined by multiplying the FMV by each respective factor.

🏥 How does the Medicaid 5-Year Lookback Penalty work?

Creating a life estate deed within the 60-month (5-year) lookback period prior to applying for institutional Medicaid long-term care constitutes an uncompensated gift of the remainder interest. LifeEstateCalc divides the uncompensated remainder value by your state's statutory Monthly Nursing Home Private Pay Divisor Rate to compute the exact penalty period in months during which Medicaid benefits will be denied.

👥 How does Joint Survivorship Modeling work?

For married couples holding property as joint tenants with rights of survivorship, the remainder interest does not vest in possession until the death of the *last surviving spouse*. LifeEstateCalc applies the law of probability for measuring lives ($R_{joint} = R_1 \times R_2$) under IRS Publication 1457 formulas.

💳 In-App Purchases, Passes & Subscriptions

LifeEstateCalc offers flexible StoreKit 2 pricing:

• Single Deed Pass ($49.99): Permanent unwatermarked Actuarial Valuation Certificate PDF export and lifetime calculations for one specific property deed.
• Monthly Pro Pass ($39.99 / month): Unlimited deed records, joint-life survivorship modeling, and PDF exports. Billed monthly.
• Annual Pro Pass ($299.99 / year): Comprehensive workstation access with an official 7-Day Free Trial for eligible new subscribers.

Subscriptions can be managed or cancelled anytime via iOS Settings > Apple ID > Subscriptions.

🔄 Restoring Purchases

If you switch or restore devices, open LifeEstateCalc, go to the Pro Upgrade or Settings screen, and tap "Restore Purchases". StoreKit 2 will synchronize with Apple's servers and restore your active entitlements immediately.