1. The gross estate includes property that avoids probate, such as life insurance proceeds payable to a named beneficiary.

a. True.

b. False.

2. Which of the following incidents of ownership, held during the three year period before death, will cause inclusion of life insurance proceeds in the gross estate?

a. The right to change the beneficiary.

b. The right to borrow against the policy.

c. The right to convert group coverage to an individual contract.

d. Any of the above incidents of ownership would be enough to bring the proceeds into the gross estate.