Cal. Code Regs. tit. 18 § 13648
If any person with his own funds purchases an annuity payable to himself and any other person for their joint lives and then to the survivor for his or her life, and the purchaser dies first, the right of the surviving annuitant to the balance of the annuity constitutes a transfer to the surviving annuitant subject to the Inheritance Tax Law.
If each annuitant under a joint life and survivorship contract contributes his or her own property for the purchase of the contract, and either annuitant dies, the right of the surviving annuitant to such portion of the balance of the annuity as is proportionate to the decedent's contribution constitutes a transfer to the survivor subject to the Inheritance Tax Law.
Note: As to the valuation of joint life and survivorship annuities, see Section 13952.9.
NOTE: Reference: Section 13648, Revenue and Taxation Code.
Cal. Code Regs. Tit. 18, § 13648