For Consumers

Life-expectancy table

Courts and appraisers can use these tables to determine the valuation or present worth of life and term estates or annuities and remainders or reversionary interests, computed at several interest rates.

Section 02.16 of chapter seventy-nine (79) of the Laws of 1947 (RCW 48.02.160 (leg.wa.gov)) provides:

“* * * The Commissioner shall: Obtain and publish for the use of courts and appraisers throughout the state, tables showing the average expectancy of life and values of annuities and of life and term estates.”

The following tables, for determining the present worth of life estates or annuities and remainders or reversionary interests, can be used by state courts and appraisers. The tables are based on the 2010 U.S. population mortality and calculated at ½, 1, 1 ½, 2, 2 ½, 3, 3 ½ and 4 percent annual interest rates. The range of interest rates used in the tables is based on current and future market conditions until next publication.

Tables I.A. through I.H. give the basis for valuing life estates or annuities, the proceeds of which the beneficiary enjoys during his or her life. These tables are applicable only where continuation of the annuity is dependent upon a single life. Where two or more lives are involved, a special calculation will be required, using supplementary factors derived from the 2010 U.S. population mortality.

Tables II.A. through II.H. relate to term estates or annuities-certain, which are payable irrespective of continuation of life, but terminable at the end of a certain period stated in the provisions of the instrument creating the estate.

Mike Kreidler
Insurance Commissioner

Explanatory notes - Tables I.A. through I.H.

  • The first column (column X) represents the age of the person being considered at his or her nearest birthday.

  • The second and fifth columns (Male A(x) or Female A(x)) show the present worth of one dollar payable upon death. 

  • The third and sixth columns (Male a(x) or Female a(x)) show the present value of an annuity of $1 (one dollar) per year payable at the end of each year during the lifetime of a person of the specified age, with a final fractional payment upon death commensurate with the time elapsed from the last birthday. 

  • The fourth and seventh columns (Male e(x) or Female e(x)) show the complete expectation of life, which is the average number of years of future life for persons of the specified age.

Adjustments for monthly payments, etc.

If a life interest in an estate or income from property is payable in semi-annual, quarterly, monthly or weekly installments, the tables should be used without adjustment.

In the case of a life annuity or an annuity-certain, if payable at the end of semi-annual, quarterly, monthly or weekly periods, the annuity value should be multiplied by the appropriate adjustment factor: 

Interest Rate0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%
Semi-annual

1.00125

1.00249

1.00374

1.00498

1.00621

1.00744

1.00867

1.0099

Quarterly

1.00187

1.00374

1.00561

1.00747

1.00933

1.01118

1.01303

1.01488

Monthly

1.00229

1.00458

1.00686

1.00913

1.01141

1.01368

1.01594

1.0182

Weekly

1.00245

1.0049

1.00734

1.00977

1.01221

1.01464

1.01706

1.01948

Examples with 2 percent interest

Example 1

  • A decedent’s will provides that his nephew, age 40 years, is to receive the sum of $1,000 per year for life, payable in monthly installments. What is the present value of the bequest? 

  • The third column of Table I.D provides the factor for valuation of a life annuity for a male at age 40 (25.8570), and the monthly adjustment factor is 1.00913. The value required is 25.8570 X 1.00913 X $1,000, or $26,093.

Example 2

  • A decedent leaves to his sister, age 50, a life interest in property valued at $50,000, and provides that upon the sister’s death, absolute title to the property will pass to other parties. What is the value of the sister’s interest and what is the value of the remainder interest of the other parties in the estate? 

  • Assuming a net return of 2% per annum, the sister’s income from the estate will be .02 X $50,000 or $1,000 per year. The value of her income (whether paid annually or otherwise) will be $1,000 X 23.4000 [see Column (6) Table I.D, age 50] or $23,400. 

  • The remainder interest of the other parties is determined from Column (5) of Table I.D, taking into account the age of the person receiving the life interest. The value of $1 due upon the death of the sister is $.5320. Hence, the reversion is valued at .53203 X $50,000, or $26,602, for those who receive the remainder interest. 

  • Note: The value of a life estate plus the value of the reversionary or remainder interest equals the value of the whole property. Therefore, only one of the values needs to be computed; the second can then be arrived at by simply subtracting the value computed from the value of the whole property.

Example 3

  • Income from property valued at $100,000 is payable to the decedent’s niece for 20 years, regardless of whether or not the niece survives. At the end of 20 years (whether or not the niece is then living), the property is to pass to the decedent’s younger brother (or to the younger brother’s estate if he is not then living).

  • Income at 2% on $100,000 will be $2,000 per year. Present worth of $1 per year for 20 years, according to Column (3) of Table II.D, is $16.3514. The niece’s interest, therefore, is $16.3514 X$2,000 or $32,703.

  • Present worth of $1.00 due at the end of 20 years, from Column (2) is $.672971. The brother’s interest is valued at $.672971 X 100,000 or $67,297.

  • Note: The value of a term estate plus the value of the reversionary or remainder interest equals the value of the whole property. Therefore, only one of the values needs to be computed; the second can be arrived at by simply subtracting the value computed from the value of the whole property.

Example 4

  • The decedent provides that a beneficiary is to receive $100 per month for a fixed period of 10 years and at the end of that period the beneficiary will receive a final payment of $10,000. What is the value of the bequest?

  • One dollar ($1) per year payable annually for 10 years is worth $8.9826 [Column (3), Table II.D]. For adjustment to a monthly basis, the correcting factor is 1.00913. The payments amount to $1,200 per year and the value of the income is, thus, $8.9826 X 1.00913 X 1,200, or $10,878.

  • The value of $10,000 due at the end of 10 years is $.820348 X 10,000, or $8,203. The total value of the bequest is $10,878 + $8,203, or $19,081.