Two years ago, Nils transfers a $200,000 life insurance policy on his life to his daughter, Gail. The policy is worth $60,000 at the time of transfer and Gail pays Nils $50,000. When Nils dies this year, the $50,000 cash is still in a savings account. The consideration offset when computing Nils's gross estate is

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The consideration offset when computing Nils's gross estate is the amount he received from Gail, which is $50,000. The $60,000 value of the policy at the time of transfer is not included in Nils's gross estate because he no longer owned the policy. Therefore, the correct answer is B) $50,000.

Two Years Ago, Nils Transfers a $200,000 Life Insurance Policy