fte insured made a transfer of a life insurance policy on his life two years prior to his death. Even though he retained no incidents of ownership in the policy, the proceeds will be includible in his gross estate.

Question

Quizplus · Accepted Answer

According to the Internal Revenue Code section 2035, if a decedent transferred a life insurance policy within three years of their death, the proceeds will be included in their gross estate, even if they retained no incidents of ownership in the policy. Therefore, in this scenario, the proceeds of the policy will be includible in the insured's gross estate.

Fte Insured Made a Transfer of a Life Insurance Policy