Tom and Jean Are Husband and Wife and Live in California.In

question 37

Multiple Choice

Tom and Jean are husband and wife and live in California.In 1991,they use $400,000 of community funds to purchase an annuity from an insurance company.Under the terms of the contract,Tom is to receive $40,000 per year for life once he reaches age 65.If Jean outlives Tom,she is to receive $30,000 per year for life.Tom dies first in 2009 (and before reaching age 65) .At this time,the value of Jean's interest is $500,000.As to this contract,Tom's gross estate includes:

• A)$0.
• B)$200,000.
• C)$250,000.
• D)$500,000.
• E)None of the above.

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Definitions:

Streptomyces Lasaliensis

A species of actinobacteria, known for producing antibiotics and other bioactive compounds.

Alkyl Magnesium Halide

A type of Grignard reagent, which is a key reagent in organic synthesis, involving an alkyl group bonded to magnesium and a halogen.

Grignard Reaction

A chemical reaction in which an alkyl, vinyl, or aryl-magnesium halide (Grignard reagent) adds to a carbonyl group in an aldehyde or ketone.

Epoxide

A cyclic ether with a three-atom ring, consisting of an oxygen atom and two carbon atoms.