Question ID: $1252022$

Frank is a widower. He has a $$17\mathrm{.}2$ million$$estate consisting primarily of undeveloped real estate and life insurance. His children are the beneficiaries of his life insurance. His will leaves $$900,000$ of probate assets to each of his three children, with the residue to his cousin, James. Frank learned that his estate may have liquidity problems when he dies.

Which one of the following techniques$$is the most appropriate to increase liquidity in Frank's estate?

A$)$

Change the beneficiary on his life insurance to his estate

B$)$

Amend his will to place the undeveloped real estate in an estate trust

C$)$

Place the undeveloped real estate in a qualified terminable interest property $($QTIP$)$ trust and make the QTIP election

D$)$

Transfer existing life insurance policies to an irrevocable life insurance trust with his children as beneficiaries, which allows the trustee to purchase some of the hard$-$to$-$sell property from the estate and$/$or to loan funds to the estate