On January 1, 2004 a father gave his daughter a $150,000 straight (ordinary) life insurance policy on his life. Premiums are paid annually. The pertinent facts about the policy are:
-Date of issue: July 1, 1992
-Premium paid on July 1, 2003 $2,400 Terminal reserve on July 1, 2003 15,000
-Terminal reserve on July 1, 2004 18,000
What is the value of the policy for federal gift tax purposes?
- $16,200
- $150,000
- $17,700
- $17,400
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