The annuity is included in alans gross estate-taxable estate

Assignment Help Financial Accounting

Reference no: EM13747405

LO.6, 7 In 2000, Alan purchases a commercial single premium annuity. Under the terms of the policy, Alan is to receive $120,000 annually for life. If Alan predeceases his wife, Katelyn, she is to receive $60,000 annually for life. Alan dies first at a time when the value of the survivorship feature is $900,000.

a. How much, if any, of the annuity is included in Alan's gross estate? Taxable estate?

b. Would the answers to part (a) change if the money Alan used to purchase the annuity was community property?

Reference no: EM13747405

Questions Cloud

Expenditure cycle activities related to the acquisition : Develop a data model of Fred’s Train Shop’s expenditure cycle activities related to the acquisition of office equipment and other fixed assets. Fred sometimes orders multiple pieces of equipment. Vendors usually ship the entire order but sometimes ar..

What are advantages of distribution strategy : Describe how you would design a new logistics network consisting of only a single warehouse. Provide an outline of such an analysis: What are the main steps? Specifically, what data would you need? What are advantages and disadvantages of the..

.name and describe the elements of a company''s microenvironm : 1.Name and describe the elements of a company's microenvironment and given and example illustrating why each is important?2. List some of the demographic trends or intrest to markets in Belize and discuss whether these trends pose opportunities or th..

Equivalent taxable yield of bond : A municipal bond carries a coupon rate of 8.00% and is trading at par. What would be the equivalent taxable yield of this bond to a taxpayer in a 35% tax bracket?

The annuity is included in alans gross estate-taxable estate : LO.6, 7 In 2000, Alan purchases a commercial single premium annuity. Under the terms of the policy, Alan is to receive $120,000 annually for life. If Alan predeceases his wife, Katelyn, she is to receive $60,000 annually for life. Alan dies first at ..

Write 150 words on industrial economy in us after civil war : Write 150 words on industrial economy in US after the civil war.

A thorough executive summary and an overview of the company : A thorough executive summary and an overview of the company, its history, background, and stage in the company life cycle The need(s) the company addresses and the customers it pursues The role of the Internet in strategy: business strategy, Informat..

Reduce the overall drug error rate in the hospital : What measures should be adopted to reduce the overall drug error rate in the hospital. What special benefits should be given to the patients who have suffered due to negligence by the hospital staff for wrong drug administration and other reasons

Discuss the estate tax ramifications as to garth : LO.6, 9 At the time of his death, Garth held a life estate in the Myrtle Trust with the remainder passing to Garth's adult children. The trust was created by Myrtle (Garth's mother) in 1984 with securities worth $900,000. The Myrtle Trust had a value..

User Account

All Pages