Edie died last month owning a whole life insurance policy on her husband Rob’s life. The...

Edie died last month owning a whole life insurance policy on her husband Rob’s life. The death benefit amount was $500,000 and the insurance company valued the policy at $80,000. Edie was the beneficiary of the policy and her son Manny was the contingent owner.

What amount is included in Edie’s estate? Is the policy part of Edie’s probate estate? Explain your answers.

Expert Solution

Answer 1. $ 500,000 amount will include in Edie’s estate, because this is part of his gross estate. In gross estate all the property which is subject to federal tax on his death, include both probate estate and non probate estate.

The death benefit of Edie’s policy included in his gross estate, not in her probate estate because in probate estate all his property can be transferred by his will or by law if he has no will.

ekkarill92 answered 2 years ago

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Edie died last month owning a whole life insurance policy on her husband Rob’s life. The...

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