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What are the estate tax consequences in the following independent cases involving commercial annuities? H and...

What are the estate tax consequences in the following independent cases involving commercial annuities? H and W are married. H purchased a joint and survivorship annuity for $500,000. When H died the present value of W's annuity was $300,000. Same as (a) except W died first and the value of H's remaining annuity was $250,000. Same as (a) except that the annuity was paid for by W's employer. Same as (b) but the policy was purchased with community property. H and W each purchased a single life annuity for $250,000. H died first, several years before W. How would the answers above change if the annuities involved were private annuities?

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Expert Solution

What are the estate tax consequences in the following independent cases involving commercial annuities? H and W are married. H purchased a joint and survivorship annuity for $500,000. When H died the present value of W's annuity was $300,000.

Estate tax consequences will result due to death of H. When H died the present value of W's annuity was $300,000.Hence, the estate tax consequences will now be calculated on the present value of W's annuity of $ 300,000

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Same as (a) except W died first and the value of H's remaining annuity was $250,000.

The estate tax consequences will now be calculated on the value of H's remaining annuity of $250,000.

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Same as (a) except that the annuity was paid for by W's employer.

The estate tax consequences will still be calculated on the present value of W's annuity of $ 300,000

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Same as (b) but the policy was purchased with community property.

Since the policy was purchased with the community property, there will be no incidence of estate taxes.

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H and W each purchased a single life annuity for $250,000. H died first, several years before W.

The estate tax consequences will now be calculated on the value of H's remaining annuity of $250,000.

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How would the answers above change if the annuities involved were private annuities?

There will be no change in the answers above.


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