Using his separate funds, Wilbur purchases an annuity that pays him a specified amount until death. Upon Wilbur's death, a reduced amount is to be paid to Marcia for her life. Marcia predeceases Wilbur. Nothing concerning the annuity contract is included in Marcia's gross estate.

Question

Quizplus · Accepted Answer

Since Marcia predeceased Wilbur and had no ownership interest in the annuity, the annuity does not form part of her gross estate. The annuity was purchased by Wilbur with his separate funds and the benefits were contingent on his survival; thus, Marcia's estate does not include any part of the annuity.

Using His Separate Funds, Wilbur Purchases an Annuity That Pays