§2039 — Annuities
35 cases·5 followed·10 distinguished·20 cited—14% support
Statute Text — 26 U.S.C. §2039
The gross estate shall include the value of an annuity or other payment receivable by any beneficiary by reason of surviving the decedent under any form of contract or agreement entered into after March 3, 1931 (other than as insurance under policies on the life of the decedent), if, under such contract or agreement, an annuity or other payment was payable to the decedent, or the decedent possessed the right to receive such annuity or payment, either alone or in conjunction with another for his life or for any period not ascertainable without reference to his death or for any period which does not in fact end before his death.
Subsection (a) shall apply to only such part of the value of the annuity or other payment receivable under such contract or agreement as is proportionate to that part of the purchase price therefor contributed by the decedent. For purposes of this section, any contribution by the decedent’s employer or former employer to the purchase price of such contract or agreement (whether or not to an employee’s trust or fund forming part of a pension, annuity, retirement, bonus or profit sharing plan) shall be considered to be contributed by the decedent if made by reason of his employment.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §20.2039-1 Annuities
- Treas. Reg. §Treas. Reg. §20.2039-1(a) In general.
- Treas. Reg. §Treas. Reg. §20.2039-1(b) Agreements or plans to which section 2039 (a) and (b) applies.
- Treas. Reg. §Treas. Reg. §20.2039-1(c) Amount includible in the gross estate.
- Treas. Reg. §Treas. Reg. §20.2039-1(d) Insurance under policies on the life of the decedent.
- Treas. Reg. §Treas. Reg. §20.2039-1(e) No application to certain trusts.
- Treas. Reg. §Treas. Reg. §20.2039-1(f) Effective/applicability dates.
- Treas. Reg. §Treas. Reg. §20.2039-1(i) §20.2039-1(i)
- Treas. Reg. §Treas. Reg. §20.2039-1T Limitations and repeal of estate tax exclusion for qualified plans and individual retirement plans (IRAs)
- Treas. Reg. §Treas. Reg. §20.2039-1T(b) Section 525(b)(3) of the TRA of 1984 amended section 245 of TEFRA to provide that the $100,000 limitation on the exclusion for the value of a decedent's interest in a plan or IRA will not apply to the estate of any decedent dying after December 31, 1982, to the extent that the decedent-participant was in pay status on December 31, 1982, with respect to such interest and irrevocably elected the form of benefit payable under the plan or IRA (including the form of any survivor benefits) with respec
- Treas. Reg. §Treas. Reg. §20.2039-1T(c) Similarly, the TRA of 1984 provides that the repeal of the estate tax exclusion for the value of a decedent's interest in a plan or IRA will not apply to the estate of a decedent dying after December 31, 1984, to the extent that the decedent-participant was in pay status on December 31, 1984, with respect to such interest and irrevocably elected the form of benefit payable under the plan or IRA (including the form of any survivor benefits) with respect to such interest before July 18, 1984.
- Treas. Reg. §Treas. Reg. §20.2039-2 Annuities under “qualified plans” and section 403(b) annuity contracts
- Treas. Reg. §Treas. Reg. §20.2039-2(a) Section 2039(c) exclusion.
- Treas. Reg. §Treas. Reg. §20.2039-2(b) Plans and annuity contracts to which section 2039(c) applies.
- Treas. Reg. §Treas. Reg. §20.2039-2(c) Amounts excludable from the gross estate.
- Treas. Reg. §Treas. Reg. §20.2039-2(d) Exclusion of certain annuity interests created by community property laws.
- Treas. Reg. §Treas. Reg. §20.2039-2(i) §20.2039-2(i)
- Treas. Reg. §Treas. Reg. §20.2039-2(v) In the case of an annuity contract described in paragraph (b)(3) of this section, a rollover contribution described in section 403(b)(8) is considered an amount contributed by the employer.
- Treas. Reg. §Treas. Reg. §20.2039-3 Lump sum distributions under “qualified plans;” decedents dying after December 31, 1976, and before January 1, 1979
- Treas. Reg. §Treas. Reg. §20.2039-3(a) Limitation of section 2039(c) exclusion.
- Treas. Reg. §Treas. Reg. §20.2039-3(b) §20.2039-3(b)
- Treas. Reg. §Treas. Reg. §20.2039-3(c) Amounts payable as a lump sum distribution.
- Treas. Reg. §Treas. Reg. §20.2039-3(d) Filing date.
- Treas. Reg. §Treas. Reg. §20.2039-4 Lump sum distributions from “qualified plans;” decedents dying after December 31, 1978
- Treas. Reg. §Treas. Reg. §20.2039-4(a) Limitation on section 2039(c) exclusion.
35 Citing Cases
Among these specific sections is section 2039, which reads in pertinent part as follows: - 13 - SEC.
The United States argued that the annuity rules of section 2039 should apply, and therefore the stream of payments should be valued under the tables set forth in section 7520.
nuity date. Edna was not named as an annuitant, beneficiary, or owner on the annuity application. Because she did not possess a right to payments for any period under the annuity, the value of the annuity is not includable in her gross estate under section 2039. However, the fact that an amount is not includable in a decedent’s gross estate under section 2039 does not preclude its inclusion in the gross estate under some other section of the estate tax laws. See Estate of Kleemeier v. Commission
that the annuity was purchased in 1995 using $140,000 of KPLP’s funds. Because the purchase price of the annuity was contributed entirely by KPLP and none was paid by Austin, the value of the annuity is not includable in Austin’s gross estate under section 2039. However, the fact that an amount is not includable in a decedent’s gross estate under section 2039 does not preclude its inclusion in the gross estate under some other section of the estate tax laws. See Estate of Kleemeier v. Commissio
The United States argued that the annuity rules of section 2039 should apply, and therefore the stream of payments should be valued under the tables set forth in section 7520.
Among these specific sections is section 2039, which reads as follows: SEC.
Among these specific sections is section 2039, which reads as follows: SEC.
The Court held that the arrangement was not life insurance within the meaning of the parenthetical exception contained in section 2039, and therefore, the proceeds of the policies were includable in decedent's gross estate.
The Court held that the arrangement was not life insurance within the meaning of the parenthetical exception contained in section 2039, and therefore the proceeds of the policies were includable in the decedent’s gross estate.