103ut ofYour client just died. He owned a life insurance policy on his life that is payable to his daughter. The relevantinformation about this policy is as follows:Face Value $1,000,000Cash surrender value $ 50,000What is included in his estate?a. $20,000 ($1,000,000/$50,000)b. $525,000 (($1,000,000+50,000)/2)O c. Nothingd. $50,000e. $1,000,000Nex

Generally, the face value of a life insurance policy owned by the deceased is not included in their…

Answered: Your client just died. He owned a life…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter18: The Federal Gift And Estate Taxes

Section: Chapter Questions

Problem 29CE

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Mike had a $100,000 whole life insurance policy with a $10,000 loan outstanding when he died. The policy had a $20,000 cash value prior to the loan. How much will his beneficiary receive following Mike's death? a $110,000 b $100,000 c $30,000 d $90,000 e $120,000
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Question #59 of 85 Question ID: 1251855 Your client is terminally ill. Her potential gross estate, valued at $12.9 million, includes the following assets: A life insurance policy on her life, with a death benefit of $500,000; her deceased husband is the named beneficiary A general power of appointment (valued at $500,000) over the assets of a trust established by her husband; her children are the designated remaindermen of the trust A $500,000 retained life estate in the family residence Your client also expects to receive a $500,000 bequest within the next four months from her deceased sister's estate; the client's children are the contingent beneficiaries of the bequest. Your client would like to transfer a portion of her estate to her two children while she is alive to reduce her potential estate tax liability to the greatest extent possible. Which one of the following exclusion techniques would be the most appropriate to reduce the value of your client's potential gross…
34. Two years ago, your client, Tim, purchased a $100,000 whole life insurance policy on the life of his wife. He has made all of the premium payments from his separate checking account. The beneficiary of the policy is their only child. If Tim dies within the next few months, what is the value of the policy that will be included in his gross estate? A) The cash surrender value of the policy because he will have purchased the policy within three years of his death B) The full death benefit value of the policy because the proceeds are paid to a family member C) The face value of the policy because he paid the premiums from his separate checking account D) The replacement value of the policy because he will have an incident of ownership at death
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H6. Sarah is the beneficiary of her mother’s $100,000 life insurance policy. When her mother dies, Sarah is relying on the entire death benefit to pay expenses related to her mother’s funeral and end-of-life care. However, unbeknown to Sarah, her mother had outstanding policy loans totaling $60,000. How much can Sarah expect to receive in death benefits from her mother’s policy? a. $100,000 b. $60,000 c. $40,000 d. $20,000
T 2.
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Your client just died. He owned a life insurance policy on his life that is payable to his daughter. The relevant information about this policy is as follows: Face Value $1,000,000 Cash surrender value $ 50,000 What is included in his estate?