1. Jamal made an irrevocable assignment of a life insurance policy to create a life insurance gift trust to benefit his fourteen year old son, Keetan. Jamal died two years after the transfer. Which of the following is true?
a. Keetan cannot access trust proceeds until he is 21
b. Jamal’s purchase of the insurance is considered a gift of “future interest” that qualifies for the annual gift exclusion
c. The value of the policy will be included in Jamal’s estate
d. The trust is exempt from the Generation Skipping Tax
2. Ann, the owner and the insured of a $1 million life insurance policy, creates an irrevocable life insurance trust of which her 4 children are the beneficiaries and she is the Trustee. The trust contains Crummey withdrawal provisions. Ann absolutely-assigned the policy with a value of $300,000. Ann dies in 2015. What value of the trust will be included in Ann’s gross estate?
Zero
$44,000
$956,000
$1 million