Question #$50$ of $50$

Question ID: $5$

Beverly inherited $$1,000,000$ many years ago when her grandmother died. Because she was a minor at the time, a fixed annuity with a $5\%$ minimum interest guarantee to annuitization was purchased for her with the inheritance. She has occasionally withdrawn money from the annuity over time. She is retired and decides to annuitize. The annuity is now valued at $$3,500,000,$ and a straight$-$life distribution would provide her with monthly income of $$30,000.$ If she annuitizes and dies $60$ months later, how muc her annuity value will be includable in her gross estate?

A$)$ $$0$

B$)$ $$3,500,000($the value of her annuity at the time of annuitization$)$

C$)$ $$2,500,000($the value at annuitization less the cost basis of $$1,000,000)$

D$)$ $$1,000,000($the value of her annuity at the time of inheritance$)$

Check for Review

$(0)$ Kaplan, Inc. All Rights Reserved.

Privacy Policies

Terms & Conditions

Contact Inform

Thursday, March $14,20247$:$04$ PI