Matthew owns an insurance policy (face amount of $2,165,500) on the life of Emily with Uma...

Matthew owns an insurance policy (face amount of $2,165,500) on the life of Emily with Uma listed as the designated beneficiary. If Emily dies first and the $2,165,500 is paid to Uma, how much is included in the following gross estates?

If an amount is zero, enter "0".

a. Matthew's gross estate?

b. Emily's gross estate?

Expert Solution

a) Matthew's gross estate: 0

Even though he is a owner of the policy, the beneficiary is different and he do not get any proceeds after death of Emily.

b) Emily's gross estate: 0

Since Emily is neither the owner of the policy nor her estate gets the benefits from the policy.

ekkarill92 answered 2 years ago

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