Interest in a trust subject to gift tax pursuant to paragraph 2 of Article 3-2 herein shall be valued by the following rules:
(1)If the beneficiary is entitled to the entire trust interest which consists of money, the trust amount will govern; if the trust interest is property other than money, the prevailing value of the trust property at the time of beneficiary’s death will govern.
(2)If the trust interest consists of money other than accrued interest, the present value of the trust amount discounted from the time of beneficiary’s death to the expiration of beneficial period at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of beneficiary’s death will govern; if the trust interest consists of property other than money, the prevailing value of the trust property at the time of beneficiary’s death, discounted to present value at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of beneficiary’s death will govern.
(3)If the trust interest consists of accrued interest, the trust amount or the prevailing value of the trust property at the time of beneficiary’s death less the value computed according to subparagraph 2 will govern. Notwithstanding the foregoing, if the accrued interest is fixed interest paid on treasury bonds, corporate bonds, bank debentures or other contractually agreed interest payment, its value shall be computed by the total annual interest accrued discounted to present value at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of beneficiary’s death.
(4)If the trust interest consists of the right to receive fixed amount payable periodically, its value shall be computed by the sum of interest receivable each year discounted to present value at the fixed interest rate for one-year term deposit compound annually as quoted by the Postal Remittance & Savings Bank at the time of beneficiary’s death. If the trust interest consists of the right to entire trust interests less the fixed amount payable periodically, its value shall be computed by the prevailing value of the trust property at the time of beneficiary’s death less the value computed according to the subparagraph 3.
(5)Partial interest in any of the trust interest as stipulated in subparagraphs 1, 2, 3, and 4 shall be valued by the proportion of the benefit receivable.