A BILL TO BE ENTITLED
AN ACT to replace an obsolete fixed rate of interest for calculation of life estates with a rate tied to Federal Estate Tax regulations.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 8‑47 reads as rewritten:
"§ 8‑47.  Present worth of annuities.
Whenever it is necessary to establish the present worth or cash value of an annuity to a person, payable annually during the person's life, such present worth or cash value may be ascertained by the use of the following table in connection with the mortality tables established by law, the first column representing the number of years the annuity is to run and the second column representing the present cash value of an annuity of one dollar for such number of years, respectively:
No. of Years Annuity	Cash Value of the Annuity
	is to Run	of $1
	1			$ 0.943
	2			1.833
	3			2.673
	4			3.465
	5			4.212
	6			4.917
	7			5.582
	8			6.210
	9			6.802
	10			7.360
	11			7.887
	12			8.384
	13			8.853
	14			9.295
	15			9.712
	16			10.106
	17			10.477
	18			10.828
	19			11.158
	20			11.470
	21			11.764
	22			12.042
	23			12.303
	24			12.550
	25			12.783
	26			13.003
	27			13.211
	28			13.406
	29			13.591
	30			13.765
	31			13.929
	32			14.084
	33			14.230
	34			14.368
	35			14.498
	36			14.621
	37			14.737
	38			14.846
	39			14.949
	40			15.046
	41			15.138
	42			15.225
	43			15.306
	44			15.383
	45			15.456
	46			15.524
	47			15.589
	48			15.650
	49			15.708
	50			15.762
	51			15.813
	52			15.861
	53			15.907
	54			15.950
	55			15.991
	56			16.029
	57			16.065
	58			16.099
	59			16.131
	60			16.161
	61			16.190
	62			16.217
	63			16.242
	64			16.266
	65			16.289
	66			16.310
	67			16.331
The present cash value of the annuity for a fraction of a year may be ascertained as follows: Multiply the difference between the cash value of the annuities for the preceding and succeeding full years by the fraction of the year in decimals and add the sum to the present cash value for the preceding full year.The present value of a legal life estate, including the present cash value of a life interest in land or the entitlement to the use of a sum of money for life, shall be computed by applying the federal estate tax regulations for the calculation of the value of life estates under section 2031 of the Internal Revenue Code of 1986. The federal estate tax regulations applied must be those in force on the date when the costs of the improvement are initially determined by assessment, agreement, or otherwise.
Whenever the mortality tables set out in G.S. 8‑46 are admissible in evidence in any action or proceeding to establish the expectancy of continued life of any person from any period of the person's life, whether the person is living at the time or not, the annuity tables herein set forth shall be evidence, but not conclusive, of the loss of income during the period of life expectancy of the person."
SECTION 2.  This act becomes effective January 1, 2012.