Abbott gave his cash value life insurance policy to his son, Bidewell five years ago when the cash value was $300,000. The death benefit of the policy is $1 million. Abbott has paid the premiums on the policy ($30,000 a year) since he gave the policy to Bidewell. Abbott dies today. What amount goes into his gross estate?

Group of answer choices

$150,000

$0

$300,000

$1 million

Flag question: Question 9

Question 93 pts

April wants to make sure that she makes full use of the applicable estate tax credit upon her death, but also wants to make sure that her husband, Al, has access to her property. Which of the following would you recommend?

Group of answer choices

A Life Insurance Trust.

A Bypass Trust.

A Revocable Living Trust.

A Section 2503(b) Trust.

Flag question: Question 10

Question 103 pts

Arlos son, Bart, age 16 attends boarding school in another state. Arlo pays Barts $60,000 tuition, $30,000 room and board, plus $20,000 for travel and incidentals. What are Arlos gift tax implications?

Group of answer choices

There is no gift tax because it is considered support.

A taxable gift of $95,000

A $20,000 taxable gift

A $5,000 taxable gift