Five years ago Heinz purchased a $1,200,000 term life insurance policy from West Coast Life Insurance payable to his wife Charlene upon Heinz's death. In 2011, Heinz assigned the policy to an irrevocable life insurance trust with the First National Bank as trustee and daughter Vanessa as beneficiary at a time when the policy had no value (therefore no gift tax). Starting in 2011, Charlene made the annual contributions to the trust in the amount of $13,000 to cover the annual premiums. The date of death value of the policy was $1,200,000.