_{Husband and Wife, residents of a separate property state, were divorced two years before Husband's death.}

As part of the divorce agreement (which complied with Section 2516), Wife surrendered her marital rights and Husband agreed to pay Wife $10,000 a year until her death or remarriage. Assuming the alternate valuation date was not selected, what are the probable estate tax consequences with respect to Wife's claim? [Apply Reg. section 20.2053-4(d)(6)(i) at p. 1299 of your Code and Regulations].

A.There is no deduction permitted to Husband's estate since Wife's marital rights were not adequate consideration for Husband's promise to pay.

B.There is no deduction permitted to Husband's estate since the payments to Wife are contingent on Wife's continuing to live or not remarry.

C.A deduction will be pennitted to Husband's estate only if Wife can show that she had been kind and loving to Husband during the marriage.

D.A deduction is permitted to Husband's estate of the present value on Husband's date of death (determined actuarially) of Wife's claim against Husband's estate.