542. What are the estate tax results when a decedent has been receiving payments under an annuity contract?Nuco Employeercline212015-04-28T21:01:00Z2015-04-28T21:01:00Z13802172Summit Business Media185254714Site Map/Annuities/Estate Taxation/Nonqualified/In GeneralSite Map/Life Insurance/Estate Taxation/In General/Settlement OptionsSite Map/Transfer Taxation/Federal Estate Taxation/Annuities/Nonqualified/In GeneralSite Map/Transfer Taxation/Federal Estate Taxation/Life Insurance/In General/Settlement Options2005-01-24T00:00:00ZTaxFactsDefaultArticleSite Map/Transfer Taxation/Quick Clicks/Gross Estate117530600-00-tf1.xml600.00;#1558;#2036;#2318;#2347;#2408;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 1What, in general, are the estate tax results when decedent has been receiving payments under an annuity contract, or under an optional settlement of endowment maturity proceeds or life insurance cash surrender values?97600.0000000000TaxFactsDefaultArticleSBMEDIA\moss-admin2010-01-15T00:15:39Z542. What are the estate tax results when a decedent has been receiving payments under an annuity contract?If a decedent was receiving a single life “life only” annuity (with no “refund feature”), there is no property interest remaining at the decedent’s death to be included in the decedent’s gross estate, as payments terminated at death. If a contract provides a survivor benefit (as under a refund life annuity, joint and survivor annuity, or installment option), tax results depend on whether the survivor benefit is payable to a decedent’s estate or to a named beneficiary and, if payable to a named beneficiary, on who paid for the contract. If payable to a decedent’s estate, the value of the post-death payment or payments is includable in the decedent’s gross estate under IRC Section 2033 as a property interest owned by the decedent at the time of his or her death. If payable to a named beneficiary, the provisions of IRC Section 2039(a) and IRC Section 2039(b) generally apply and inclusion in the gross estate is determined by a premium payment test. Thus, if a decedent purchased the contract (after March 3, 1931), the value of the refund or survivor benefit is includable in the decedent’s gross estate. In the event a decedent furnished only part of the purchase price, the decedent’s gross estate includes only a proportional share of this value (Q 544 to Q 548). The foregoing rules do not apply to death proceeds of life insurance on the life of a decedent (Q 76). In addition, special statutory provisions apply to employee annuities under qualified pension and profit-sharing plans (Q 3877, Q 3878), to certain other employee annuities (Q 552, Q 553), and to individual retirement plans (Q 3659).