NC S550

Replaces the fixed interest rate method (4.5% for annuities and 6% for life interests in land) with federal estate tax regulations for calculating the present value of life estates.

Requires use of Federal Estate Tax regulations under Section 2031 of the Internal Revenue Code of 1986 to determine the value of legal life estates, including life interests in land and entitlements to use money for life.

Specifies that the federal estate tax regulations applied must be those in force on the date when improvement costs are initially determined by assessment, agreement, or otherwise.

Maintains the existing annuity tables and mortality tables as evidence (though not conclusive) for establishing life expectancy in legal proceedings.

Effective date: January 1, 2012.