Actuarial tables assume normal life expectancy. They are useful to reduce estate tax if a person is not likely to live their normal life expectancy. They also assume a reciprocal discount and compounding rate equivalent to the Code Section 7520 rate. The Code section 7520 rate in October, 2000 was 7.4%. If death is not imminent (greater than 50% chance will survive one (1) year), normal life expectancy can be used to enhance gifting or estate tax reduction using various sophisticated strategies even though normal life expectancy is not likely to be achieved. IRS has recently authorized SPLATs, which involve a sale of a remainder interest in exchange for an annuity that is payable by junior family members who have substantial independent financial means.