Cal. Code Regs. tit. 18 § 15558.1
If an individual who has purchased an annuity contract from a life insurance or other authorized company, by the terms of which the company is to pay him periodically a sum of money for the balance of his life, makes a gratuitous and irrevocable assignment of the contract, the value of the gift is the amount which the company would charge for an annuity contract, providing for the payment of the annuity specified in the contract assigned, for the life of a person of the age of the donor at the date of the gift. This amount will be approximately equal to the total amount which the donor has paid to the company under the contract, plus any interest earned thereon, less the amount of any payments previously made by the company to the donor.
NOTE: Reference: Section 15558, Revenue and Taxation Code.
Cal. Code Regs. Tit. 18, § 15558.1