Jacob and Emma are husband and wife and have always lived in New Jersey,a common law state.In 1992 and using separate funds,they bought an annuity from an insurance company-the purchase price was furnished 1/4 by Jacob and 3/4 by Emma.Under the terms of the contract,Jacob is to receive $50,000 per month for life when he reaches age 65.If Emma survives Jacob,she is to receive $30,000 per month for her life.Jacob dies first in 2012,at which time the value of Emma's survivorship annuity is $1,400,000.As to this annuity,how much (if any)is included in Jacob's gross estate?

Question

Quizplus · Accepted Answer

The Answer of Jacob and Emma are husband and wife and have always lived in New Jersey,a common law state.In 1992 and using separate funds,they bought an annuity from an insurance company-the purchase price was furnished 1/4 by Jacob and 3/4 by Emma.Under the terms of the contract,Jacob is to receive $50,000 per month for life when he reaches age 65.If Emma survives Jacob,she is to receive $30,000 per month for her life.Jacob dies first in 2012,at which time the value of Emma's survivorship annuity is $1,400,000.As to this annuity,how much (if any)is included in Jacob's gross estate?

Jacob and Emma Are Husband and Wife and Have Always