Jack and Jill Miller purchased a joint and survivorship annuity from the You Only Live Once Insurance Company. Jack paid for the annuity and died 11 years later, at which time Jills survivorship interest had a value of $100,000. Jill was killed in an automobile accident four months later, having collected $4,000 since her husbands death.

a. Must the date of death value be used, even though it is known that the asset is worthless prior to the due date of the return?

b. Does it make a difference that the alternate valuation date is elected?