Willie purchased a whole-life insurance policy on his brother, Benny. Under the policy, the insurance company will pay the named beneficiary $100,000 upon the death of the insured, Benny. Willie names Tess the beneficiary, and upon Bennys death, Tess receives the proceeds of the policy, $100,000. Identify the transfer tax implications of this arrangement.

Required:

At the time of purchase of the policy.

Upon Bennys death.

(For all requirements, leave no answer blank. Enter zero if applicable.)

a.	Taxable gift made by Willie
	Taxable gift made by Benny
b.	Taxable gift made by Willie
	Taxable gift made by Benny