Last Year Diego Transferred a Life Insurance Policy Worth $75,000

question 17

Essay

Last year Diego transferred a life insurance policy worth $75,000 to an irrevocable trust with directions to distribute the corpus of the trust to his grandson, Juan, upon his graduation from college, or to Juan's estate upon his death. Diego paid $5,000 of gift tax on the transfer of the policy. Early this year, Diego died and the insurance company paid $600,000 to the trust. What amount, if any, is included in Diego's gross estate?

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Definitions:

Neural Connections

Neural connections, known as synapses, are the points at which neurons communicate with each other through neurotransmitters.

Diencephalon

The diencephalon is a division of the brain located between the cerebrum and the midbrain, comprising structures such as the thalamus and hypothalamus, involved in sensory and neural function.

Basal Nuclei

Groups of neurons located deep within the cerebral hemispheres that are involved in controlling movement and coordination.

Muscular Activity

Physical actions or movements resulting from the contraction and relaxation of muscle groups.