Question: Joe had $ 5 0 0 , 0 0 0 of life insurance at work. He has an additional $ 4 0 , 0 0

Joe had $500,000 of life insurance at work. He has an additional $40,000 life insurance policy the company purchased on all employees. His wife is the primary beneficiary and their four children are contingent beneficiaries. Upon Joe's death, what are the tax consequences to his beneficiaries?

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