Last year Robert transferred a life insurance policy worth $470,000 to an irrevocable trust with directions to distribute the corpus of the trust to a grandson, Danny, upon graduation from college, or to Danny's estate upon death. Robert paid $41,000 of gift tax on the transfer of the policy. Early this year, Robert died, and the insurance company paid $4.2 million to the trust. What amount, if any, is included in Robert's gross estate? Note: Enter your answers in dollars, not millions of dollars.
Last year Robert transferred a life insurance policy worth $470,000 to an irrevocable trust with directions to distribute the corpus of the trust to a grandson, Danny, upon graduation from college, or to Danny's estate upon death. Robert paid $41,000 of gift tax on the transfer of the policy. Early this year, Robert died, and the insurance company paid $4.2 million to the trust. What amount, if any, is included in Robert's gross estate? Note: Enter your answers in dollars, not millions of dollars.
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 23CE
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Transcribed Image Text:Last year Robert transferred a life insurance policy worth $470,000 to an irrevocable trust with directions to distribute
the corpus of the trust to a grandson, Danny, upon graduation from college, or to Danny's estate upon death. Robert
paid $41,000 of gift tax on the transfer of the policy. Early this year, Robert died, and the insurance company paid $4.2
million to the trust.
What amount, if any, is included in Robert's gross estate?
Note: Enter your answers in dollars, not millions of dollars.
Amount to be included in Robert's gross
estate
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