However, this rule does not apply for gifts of future interests of property, which includes transfers resulting from
joint and survivor annuities.
The life expectancy multiples for joint and survivor annuities are taken from Tables II and IIA or Tables VI and VIA, whichever are applicable.
Some joint and survivor annuities provide that the size of the annuity payment will decrease after the first death-regardless of which annuitant dies first (e.
Refund guarantees are offered with contracts covering a single life and joint life annuities that terminate on the first death, but refund guarantees are not likely to be found with
joint and survivor annuities.
Currently, joint and survivor annuities are more common than joint life annuities.
These types of payment structures are most common from commercially available joint and survivor annuities.
As a practical matter, many
joint and survivor annuities are purchased by married couples.
Cash balance plans also were more likely than traditional plans to provide different choices for joint and survivor benefits: upwards of nine-tenths of the workers in cash balance plans were given a choice of different
joint and survivor annuities, compared with seven-tenths in traditional plans.
Valuing joint and survivor annuities also requires recognition of the potentially important interactions between the members of a married couple, such as joint consumption, interdependent utilities, and correlated mortality rates.
More generally, the load factors on joint and survivor annuities calculated in MPWB (1999) ranged between 7 and 21 percent.
the contributing individual) designates a beneficiary, the donee spouse's interest in the IRA would be a nondeductible terminable interest and the marital deduction would not be allowed, except in the case of certain
joint and survivor annuities (see Q 732).
If the plan offers two
joint and survivor annuities that are actuarially equivalent, the plan must specify which is the QJSA.
