Five years before his death, Troy purchased a $5 million whole life insurance policy on his life

Question:

Five years before his death, Troy purchased a $5 million whole life insurance policy on his life and named his son, Don, the beneficiary. Shortly after purchase, Troy transferred the policy to an irrevocable trust, naming his son as trustee. Troy retained no incidents of ownership.
a. Has Troy made a gift?
b. Is the $5 million in proceeds included in Troy's gross estate?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Taxation For Decision Makers 2014

ISBN: 9781118654545

6th Edition

Authors: Shirley Dennis Escoffier, Karen Fortin

Question Posted: