Final answer:
To calculate the terminable interest in a life estate, you need the life tenant's age along with the Section 7520 rate. This calculation is important for determining the present value of the life estate and the remainder interest for estate planning purposes.
Step-by-step explanation:
In order to calculate the terminable interest in a life estate, you must know the age of the life tenant. The Section 7520 rate is used in conjunction with the life tenant's age to determine the present value of the life estate. This is a legal and financial process that helps in estate planning, particularly when setting up trusts or transferring property.
The Section 7520 rate, set by the IRS, is used to discount the value of future interests in property, such as life estates and remainder interests. The age of the life tenant is crucial because it allows for the calculation of the expected duration of the life estate, which in turn affects the present value of the remainder interest. Therefore, the correct answer to the question is option c) The life tenant.