690. Bequest of an annuity followed by a direction to purchase an annuity.

690.     Bequest of an annuity followed by a direction to purchase an annuity.

A simple bequest of an annuity1, followed by a direction to trustees to purchase an annuity or a direction to purchase standing alone is, in effect, a gift of the value of the annuity2. The annuitant thus has a right to claim in cash the price to be paid for the annuity, and, if he dies before the purchase, his representatives have a similar right, even where his death occurs immediately after that of the testator3.

If the annuitant elects to take the cash value,