Willie purchased a whole-life insurance policy on his brother, Benny. Under the policy, the insurance company will
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Willie purchased a whole-life insurance policy on his brother, Benny. Under the policy, the insurance company will pay the named beneficiary $100,000 upon the death of the insured, Benny. Willie names Tess the beneficiary, and upon Benny's death, Tess receives the proceeds of the policy, $100,000. Identify and discuss the transfer tax implications of this arrangement.
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Under Section2511 neither the purchase of the insurance policy nor the designation of Tessas a ...View the full answer
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