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Annuity Value=$102,000 Monthly Payment=$500 Annuity Policy ...

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Accounting

Annuity Value=$102,000 Monthly Payment=$500

Annuity Policy
Type of Policy Non-Qualified Single Premium Deferred Annuity (SPDA)
Issue Date August 15, 2001
Owner John Hess
Primary Beneficiary Mary Hess
Contingent Beneficiary Edward and Brent Hess - 50% each
Original Investment into SPDA $30,000
Other Additions $0
Since Inception Basis Withdrawals $5,000
The tax consequences of gifting the annuity:
Because the monthly straight-life amount is so low, John would like to know the tax consequences and filing requirements if he gifts this to his
granddaughter Beth. Assume that Mary will elect to gift spilt. John and Mary want you to explain any generation skipping tax liability or tax
consequences to this gift to Beth. For generation skipping transfer tax purposes, what is the taxable amount of the gift? Please note, do
not assume this is being gifted when calculating the gross estate.
Total John Mary
Total FMV at Time of Gift $0 $0 $0
Less: Gift Tax Exclusion - John - - -
Less: Gift Tax Exclusion - Mary - - -
Net Taxable gift $0 $0 $0

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