Using his separate funds, Wilbur purchases an annuity which 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 nothing concerning the annuity contract is included in Marcia's gross estate, it implies that she didn't have any ownership or financial interest in the annuity. Therefore, upon her death, the annuity would continue to be paid to Wilbur until his death, and only then would the reduced amount be paid to Marcia's designated beneficiary or estate, if applicable.

Using His Separate Funds, Wilbur Purchases an Annuity Which Pays