A traditional split-dollar life insurance arrangement can be a source of liquidity for an employee's estate at death. Which statement regarding this arrangement is not correct? At the employee's death, the greater of the cash value or premiums paid is paid to the employer and the balance of the proceeds is paid to the beneficiary of the policy. The employer pays the portion of the annual premium equal to an increase in the cash surrender value of the policy and the employee pays the balance of the premium. A private split-dollar life insurance arrangement can be used between family members. Employees cannot transfer their share of the policy into an ILIT to protect distributions from being included in his or her gross estate. A married couple, husband, age 78 passed away last month. The executor of the estate is developing a cash flow plan to pay for the deceased personal and estate administrative expenses. Which item does not need to be included in this plan? A generation-skipping transfer tax that husband owes for property passing to husband's grandson through his will. A required minimum distribution that husband did not take from his retirement account in the year of his death. Cash for a family allowance Art appraisal fees to determine the value of the artwork husband bequeathed to charity. Melissa made a $14 million gift to her nephew Kyle in June, two months before she died. Which statement is incorrect? Melissa's executor is responsible for filing a gift tax return and for paying a gift tax on this transfer. Melissa's unified credit will offset the gift tax therefore a separate funding source to pay for this tax is not necessary. The gift tax paid on this gift is included in Melissa's gross estate. Melissa's estate must have sufficient liquidity to pay for her gift and estate taxes, debts, and expenses of estate administration; otherwise, non-liquid assets may need to be sold