What if anything is includible in dan estate

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Que 1) In the year 2003, Dan entered into the following contract with an annuity company: Dan would pay the company a single premium of $1,000,000 on the date of the contract, and, in exchange, beginning in the year 2008, the company would pay Dan $10,000 a month for his life, and upon his death, $10,000 a month to his wife, Wendy, for her life. In 2006, Dan died.
a. What if anything is includible in Dan's estate?
b. Would the amount includible change if the contract was made with a life insurance company?
c. What if Wendy paid one-half of the premium?
d. What if Dan's employer paid one-half of the premium?


Que 2) Daisy takes out an insurance policy on her own life. Daisy designated her eldest child as the beneficiary. Daisy has come to you for advice with respect to two issues relating to this policy. First she wants to know if she died today, would the proceeds of the policy be includible in her estate. Second, if proceeds would be includible, she would like to know if there is any action she can take to prevent inclusion. What advice would you give Daisy?

Reference no: EM13523871

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