American College HS330 Exam - Topic 2 Question 122 Discussion

Actual exam question for American College's HS330 exam

Question #: 122
Topic #: 2

Which of the following statements concerning the inclusion and valuation of all or part of a commercial annuity in the estate of an annuitant is correct?

AA life annuity with a period certain is includible to the extent of the present value of any remaining guaranteed payments.

BAn annuity is includible to the extent of the value determined by the special 10-year averaging rule.

CIf the executor elects the alternate valuation date an annuity is includible at its replacement cost 6 months after death.

DA joint and survivor annuity is includible to the extent that the survivor paid the purchase price of the contract.

Show Suggested Answer

Suggested Answer: A

by Juan at Mar 06, 2026, 11:05 AM

Limited Time Offer

25%

Off

Get Premium HS330 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Lorrie

15 days ago

C sounds right, but I’d double-check the replacement cost part.

upvoted 0 times

...

Kami

20 days ago

I think B is misleading, the 10-year rule is not that straightforward.

upvoted 0 times

...

Candra

26 days ago

A life annuity with a period certain is definitely includible.

upvoted 0 times

...

Lino

1 month ago

Wait, can you really elect an alternate valuation date for annuities?

upvoted 0 times

...

Arletta

1 month ago

Joint and survivor annuities can be tricky, but I think D is correct.

upvoted 0 times

...

Cecily

1 month ago

Surprised to see the replacement cost option mentioned!

upvoted 0 times

...

Millie

2 months ago

I disagree, the 10-year averaging rule is more relevant here.

upvoted 0 times

...

Meaghan

2 months ago

A life annuity with a period certain is definitely includible.

upvoted 0 times

...

Dean

2 months ago

I think the alternate valuation date rule applies to assets, but I'm confused about how it relates to annuities and their valuation.

upvoted 0 times

...

Vallie

2 months ago

I practiced a similar question about joint and survivor annuities, but I can't recall the specifics on how the purchase price affects inclusion.

upvoted 0 times

...

Marjory

2 months ago

I'm not entirely sure, but I feel like the 10-year averaging rule is more related to income tax than estate inclusion.

upvoted 0 times

...

Elke

2 months ago

I remember something about life annuities and guaranteed payments, so I think A might be correct.

upvoted 0 times

...