In 2003, Scott bought an $850,000 life insurance policy on his life, initially naming his daughter Holly as the beneficiary but he could change beneficiaries. In 2013, when the policy's interpolated terminal reserve was worth $200,000 (i.e., its fair market value) he transferred it, along with all rights, title and interest in the policy, and $10,000 cash into an irrevocable trust to be used to pay that year's premium payment. No gift tax was due as a result of the transfer. The trust terms provided income to Holly for life, remainder to Susan or Susan's estate. First National Wildcat Bank was named as the trustee, and in 2014 the trustee decided to surrender the policy for its then cash value of $250,000 and reinvest the proceeds. By early 2015 it was clear that the proceeds were not invested well, and the trust corpus was only worth $60,000. Deeply upset by the news, Scott had a sudden heart attack and died. What, if anything, is included in Scott's gross estate as a result of these transactions?

A. $0

B. $60,000

C. $250,000

D. $850,000

E. $860,000