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Ashley owns a whole-life insurance policy worth $25,000 that directs the insurance company to pay the...

Ashley owns a whole-life insurance policy worth $25,000 that directs the insurance company to pay the beneficiary $500,000 on her death. Ashley pays the annual policy premiums and has the power to designate the beneficiary of the policy. What value of the policy, if any, would be included in Ashley's estate upon her death?

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Expert Solution

The face value of $500,000 will be included in Ashley's estate upon her death irrespective of the fact that the proceeds will be received by the beneficiary and will not go in the hands of Ashley.

ekkarill92 answered 2 years ago
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