Two years prior to death,a decedent makes a gift of an insurance policy on his life.In testing for the percentage requirements of the special use valuation method (i.e. ,§ 2032A),the life insurance policy is considered.

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According to IRS regulations, in testing for the percentage requirements of the special use valuation method (i.e., § 2032A), the decedent's life insurance policy is considered if it was gifted within two years prior to their death. Therefore, the statement is true.

Two Years Prior to Death,a Decedent Makes a Gift of an Insurance