When Laura's son, Devon, was born, she set up a UL with him as the life insured. Devon is now turning 18 and Laura would like to give the policy to him as a gift. The policy currently has a death benefit of $125,000, an ACB of $12,000, and a CSV of $38,050. Devon is trying to decide whether he should surrender the policy so that he can purchase a car. If Devon chooses to surrender the policy, what are the tax consequences for him and his mother? QWZ2NIBpMDhvZU5yRINaUmFCcONOdz09 a. Devon will have no taxable policy gain because the policy will roll over to him with no consideration. b. The taxable policy gain will be attributed to Laura if Devon gives up the policy immediately after receipt. c. There will be a taxable policy gain of $38,050 with Devon and Laura splitting the taxes. d. The policy will roll over to Devon tax-free for Laura. Devon will have a taxable policy gain of $26,050