What amount of annuity is included in wallys gross estate

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Reference no: EM131287826

Wally purchased a private annuity two years ago that would pay him $30,000 for life. At his death, the annuity will pay his wife, Deana, $15,000 per year for life. Wally died last week and his executor must determine the value of his gross estate. Deana is age 64 and the § 7520 rate is 6%. What amount of the annuity is included in Wally’s gross estate?

a. Nothing- the annuity ends at Wally’s death

b. The PV of Deana’s future income stream of $152,477

c. The amount the insurance company would charge for a single annuity on Deana’s life

d. The value of the annuity multiplied by the cost basis.

Reference no: EM131287826

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