DB plan included in Estate

[Guest mike0355]

Given: DB Plan, owner and wife, no employee

Owner dies suddenly without election. Default option is 100% J&S.

Question: What is the value of the DB plan to be included in his estate?

Is it $0?

Thanks.

[frizzyguy 0]

Given: DB Plan, owner and wife, no employee

Owner dies suddenly without election. Default option is 100% J&S.

Question: What is the value of the DB plan to be included in his estate?

Is it $0?

Thanks.

What does the document say?

[SoCalActuary 10]

I believe this question is covered under estate tax rules, and belongs in a different forum. Look at the rules associated with filing form 706, and the extensive body of law on estates and inheritance tax.

[K2retire 132]

I believe this question is covered under estate tax rules, and belongs in a different forum. Look at the rules associated with filing form 706, and the extensive body of law on estates and inheritance tax.

I second that -- estate tax rules are a whole different animal.

[mbozek 27]

Given: DB Plan, owner and wife, no employee

Owner dies suddenly without election. Default option is 100% J&S.

Question: What is the value of the DB plan to be included in his estate?

Is it $0?

Thanks.

I believe that the value of the annuity benefit included for estate tax purposes would be the actuarial value of his benefit. See reg 1.2039-1(a) Decedent's gross estate includes the value of an annuity or other payment receivable by any beneficiary by reason of surviving the decedent under certain agreements or plans to the extent the contributions were made by the decedent or his employer. Having said that, the actual amount of the benefit subject to estate tax will be 0 because all transfers to a spouse who is a US citizen are eligible for the unlimited marital deduction.