John is the owner of an annuity that is in the accumulation phase. Jean is named as beneficiary. If John dies, the value of the annuity will A) be taxed to John's estate as a capital gain B) be kept by the company that issued the contract C) be paid to Jean D) not be included in his gross estate
John is the owner of an annuity that is in the accumulation phase. Jean is named as beneficiary. If John dies, the value of the annuity will A) be taxed to John's estate as a capital gain B) be kept by the company that issued the contract C) be paid to Jean D) not be included in his gross estate
Chapter27: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 26CE
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![John is the owner of an annuity that is in the accumulation phase. Jean is named as beneficiary. If John dies, the value of the annuity will
A) be taxed to John's estate as a capital gain
O B) be kept by the company that issued the contract
OC) be paid to Jean
OD) not be included in his gross estate](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbfbb57c5-24bb-408f-b50f-8e37e4ec586a%2Fcce542e4-739e-458a-a303-56d2a3b282bb%2F2hu6mmq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:John is the owner of an annuity that is in the accumulation phase. Jean is named as beneficiary. If John dies, the value of the annuity will
A) be taxed to John's estate as a capital gain
O B) be kept by the company that issued the contract
OC) be paid to Jean
OD) not be included in his gross estate
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