Husband purchases a joint & survivor annuity (not an employer plan). Wife dies 5 months after he does. There are no other beneficiaries. Q: Does the annuity become "worthless" upon wife's death, and therefore, value of zero is reported on her estate tax return?

Any assistance is appreciated.

Assuming that there is no term certain, I assume that the answer is "yes."

Also, there should have been a marital deduction in H's estate, because this is a "deductible" terminable interest.

Thanks, Noel. I have a follow-up question: May the husband's estate use the alternate valuation date and therefore report an annuity value of zero on his estate return since it is basically worthless before the 6 month period has expired. Or must is estate use the value as of his date of death?