On March 1, Bart transfers ownership of a $700,000 life insurance policy on his life that he purchased in 2019. How long must Bart live to avoid inclusion of the $700,000 death benefit in his estate?

Question

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To avoid inclusion of the death benefit in Bart's estate, he must survive for at least three years from the date of transfer. This is known as the three-year rule under Section 2035 of the Internal Revenue Code. If Bart dies within three years of the transfer, the death benefit will be included in his estate for estate tax purposes.

On March 1, Bart Transfers Ownership of a $700,000 Life