Dustin and Penny are husband and wife and always have lived in Washington.At the time of Dustin's prior death in 2009,he was insured in the amount of $600,000 with Penny as the designated beneficiary.The policy was taken out by Dustin before marriage and the premiums thereon were paid as follows: 30% prior to marriage from Dustin's separate property and 70% after marriage from community funds.As to this policy,Dustin's gross estate includes:

Question

Quizplus · Accepted Answer

The gross estate includes the portion of the insurance policy that was paid with community funds. Since 70% of the premiums were paid with community funds, 70% of the $600,000 policy is included in Dustin's gross estate, which is $420,000. However, since only half of the community property is included in the gross estate, $210,000 (half of $420,000) is included.

Dustin and Penny Are Husband and Wife and Always Have