Georgia owns an insurance policy on the life of Jake,with Scarlet as the designated beneficiary.Upon Scarlet's prior death,no transfer tax consequences result.

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When a designated beneficiary of a life insurance policy dies prior to the policyholder, there are no transfer tax consequences. This means that Georgia, as the policyholder, can choose to name a new beneficiary without incurring any gift tax or estate tax implications.

Georgia Owns an Insurance Policy on the Life of Jake,with