Discussion: TAX Estates & Trusts Life Insurance
A deceased client's son walks into your office. His father's life was insured for $10 million and he had $10 million in other assets in his estate at the time of death. Assuming the client had used none of his unified credit, had no deductions, and left his entire estate to his son, what should the client's estate tax liability be? The client had purchased the policy many years ago and has been paying the premiums himself.
What facts would have to change in order for the $10 million insurance proceeds to not be included in the father's estate? For example, what specific incidents of ownership would the son need to have in his father's policy?
Cite appropriate statutory authority, case law, and/or AICPA Code of Conduct or ABA Model Rules of Professional Conduct to support your conclusions.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.