What are the estate tax consequences

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Question - At the time of Matthew's death, he was involved in the transactions described below.

MATTHEW WAS A PARTICIPANT IN HIS EMPLOYER'S CONTRIBUTORY qualified pension plan. The plan balance of $2 million is paid to Olivia, Matthew's daughter and beneficiary. The distribution consists of the following.

Employer contributions $900000

Matthew's after- tax contributions 600000

Income earned by the plan 500000

Matthew was covered by his employer's group term life insurance plan for employees. The $200000 proceeds are paid to Olivia, the designated beneficiary.

a. What are the estate tax consequences?

b. The income tax consequences?

c. Would the answer to part (a) change if Olivia was Matthew's surviving spouse (not his daughter)? Explain.

Reference no: EM131822030

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