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Diego is a single individual who owns a life insurance policy worth $ 2 . 5 2 million that will be worth $ 8 million
Diego is a single individual who owns a life insurance policy worth $ million that will be worth $ million upon his death. This year Diego
transferred the policy and all incidents of ownership to an Irrevocable trust that pays income annually to Diego's two children for years and
then distributes the corpus to the children in equal shares. Assume that Diego has made only one prior taxable gift of $ million in January of
Refer to Exhibit and Exhibit
Required:
a Calculate the amount of gift tax due If any on the transfer of the insurance policy.
b Diego died unexpectedly this year after transferring the policy. At the time of death, Diego's probate estate was $ million, to be divided in
equal shares between Diego's two children. Calculate the amount of cumulative taxable transfers for estate tax purposes.
Note: For all requirements, enter your answers In dollars and not In millions of dollars.
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