Jacob and Emma are husband and wife and have always lived in New Jersey, a common law state. 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, when 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?

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The Answer of Jacob and Emma are husband and wife and have always lived in New Jersey, a common law state. 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, when 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