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Question - Penny owns a life insurance policy and names her son, Henry as the beneficiary. The policy payout is $250,000. 5 years prior to her death, Penny transfers the policy to her son Henry. According to Penny's will, the executor of her estate must use $100,000 of the policy payout to pay any expenses related to her death. The executor ultimately uses $50,000 of the policy payout to pay for such death related expenses. How much of the policy is included in Penny's gross estate, if any:
A. $0
B. $250,000
C. $125,000
D. $100,000
E. $50,000
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