7. Five years before his death, Troy purchased a $5 million whole life insurance policy on his life and named his son, Don, the beneficiary. Shortly after purchase, Troy transferred the policy to an irrevocable trust, naming his son as trustee. Troy retained no incidents of ownership.

a. Has Troy made a gift?

b. Is the $5 million in proceeds included in Troy’s gross estate?

8. How is estate property valued and what is the alternate valuation date?