In 2001, Alejandro Buys an Annuity for $100,000 That Will

question 69

Multiple Choice

In 2001, Alejandro buys an annuity for $100,000 that will pay Alejandro an annual amount for life with survivor benefits to his wife. When Alejandro dies in the current year, a comparable contract would have cost $81,000. What amount is included in Alejandro's gross estate?

• A)$0
• B)$81,000
• C)$100,000
• D)$181,000

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Definitions:

Bipolar Disorder

A mental health condition marked by extreme mood swings including emotional highs (mania or hypomania) and lows (depression).

Adolescents

Individuals in the transition phase from childhood to adulthood, typically between the ages of 13 and 19.

Mood Swings

Rapid and often extreme fluctuations in one's emotional state, which can be influenced by a variety of psychological or physiological factors.

Panic Disorder

An anxiety disorder marked by unpredictable minutes-long episodes of intense dread in which a person experiences terror and accompanying chest pain, choking, or other frightening sensations.