Immediate Annuity Life Period Certain Estate Taxes
Have a client considering an immediate annuity (SPIA) Life and 5 year certain. If the client dies within the 5 year period and the beneficiary receives the remaining payments–what is considered in the client’s estate for tax purposes?
Permalink Submitted by Alan Spross on Sat, 2008-05-31 03:26
The amount the beneficiary will receive will be in client’s gross estate.
Permalink Submitted by Darlene Lukaszewicz on Sat, 2008-05-31 03:34
Is it the present value of the future payments or the actual payments the bene will receive?
Permalink Submitted by Al Fry on Sat, 2008-05-31 03:37
PV. I believe the interest rate this month is 3.4 (or thereabouts).
Permalink Submitted by Darlene Lukaszewicz on Sat, 2008-05-31 03:42
thanks for all of the help.