Laverne is the owner and insured on a $$1,000,000$ face value life insurance policy in pay status. Laverne$$s adjusted basis in the life insurance contract is $$250,000.$ If Laverne gifts this life insurance policy to her daughter and listed beneficiary, Shirley, which of the following statements is correct?

Question $8$ options:

After the date of the gift, any dividends paid on the life insurance policy will be taxable to Laverne.

Shirley can amend the beneficiary designation of the life insurance policy to include her son, Lenny, as a co$-$beneficiary.

If Shirley dies before Laverne, Shirley$$s probate estate will include the replacement value of the life insurance policy.

If Laverne dies within three years of the gift of the life insurance policy to Shirley, the death benefit will be included in Laverne$$s probate estate.