Frank owns an insurance policy on the life of Cynthia,with Leon as the designated beneficiary.Upon Cynthia's prior death,Frank is treated as making a gift of the insurance proceeds to Leon.

Question

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When the owner of an insurance policy designates a beneficiary, that beneficiary becomes the recipient of the proceeds upon the insured's death. This is generally considered a gift from the owner to the beneficiary, even though the owner has passed away. In this case, Frank is the policy owner and Leon is the designated beneficiary, so upon Cynthia's death, Frank is treated as making a gift of the insurance proceeds to Leon.

Frank Owns an Insurance Policy on the Life of Cynthia,with