(a) Determine in accordance with Section 13952.1 the present value of the primary life tenant's life estate.

(b) Determine in accordance with Section 13952.1 the present value of the secondary life tenant's normal life estate as though he or she were the only life tenant.

(c) The present value of the secondary life tenant's successive life estate in the property as of the date of the transferor's death is determined by subtracting the present value of the primary life tenant's life estate, as computed pursuant to step (a), from the secondary life tenant's single life estate, as computed to step (b).

(d) The present value or worth of the remainder interest in the property is determined simply by subtracting the present value of the secondary life tenant's single life estate, as obtained pursuant to step (b), from the appraised value of the property.

The provisions of this regulation may be illustrated by the following example:

EXAMPLE.

Decedent bequeaths the annual income from $300,000 in trust to A, a female, for life. Upon the death of A the annual income is payable to B, a male, for life, and upon B's death the remainder payable to C. At the date of death, the ages of A and B, respectively, are 66 and 42. Table A(2) of Section 13953 indicates the life estate factor in column 3 for a female age 66 is .54211. The present value of A's life estate, as of the date of decedent's death, is $162,633 ($300,000 x .54211). Table A(1) indicates the life estate factor for a male age 42 is .76967. The present value of B's single life estate as of the date of the decedent's death is $230,901 ($300,000 x .76967). The present value of B's successive life estate as of the date of the decedent's death is $68,268 ($230,901 - $162,633). The present value of C's remainder interest in the property as of the date of decedent's death is $69,099 ($300,000 - $230,901).