Andrew had a pension with XYZ with Barbara designated as the beneficiary. The pension currently has a lump sum death benefit of $150,000 (assume a federal/state combined tax bracket of 33.5%) . As the beneficiary, Barbara can choose to receive a life annuity of $6,000 annually or a lump sum payment from the pension.

Barbara currently has an IRA with Andrew as the named beneficiary. Barbara is the named beneficiary on Andrew's IRA.

Both Andrew and Barbara began receiving Social Security benefits on their respective 66th birthdays. Andrew's benefit for 2012 would have been $1,200 per month, and Barbara's benefit for 2012 was estimated to be $600 per month.