Don and Roxana Are Husband and Wife and Live in a Common

question 177

Multiple Choice

Don and Roxana are husband and wife and live in a common law state. Pursuant to the estate tax rules applicable to annuities (§ 2039) , which of the following is not a correct statement?

• A) Don has a straight-life unmatured annuity. Upon his death, none of the annuity is included in his gross estate.
• B) Don's retirement plan, to which his employer contributed 50%, is in the form of an annuity with a survivorship feature covering Roxana. Upon Don's prior death, 50% of the value of the survivorship feature is included in his gross estate.
• C) Don has an annuity with a survivorship feature covering Roxana and to which she contributed 50% of the premiums. Upon Don's prior death, only 50% of the value of the survivorship feature is included in his gross estate.
• D) Don has an annuity with a survivorship feature covering Roxana. If Roxana dies first, nothing regarding the annuity is included in her gross estate.
• E) None of the above statements are false.

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