American College Exam HS330 Topic 1 Question 111 Discussion

Actual exam question for American College's HS330 exam

Question #: 111
Topic #: 1

On January 1, 2004 a father gave his daughter a $200,000 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 $3200

Terminal reserve on July 1, 2003 20,000

Terminal reserve on July 1, 2004 24,000

What is the value of the policy for federal gift tax purposes?

A$ 21,600

B$23,200

C$23,600

D$200,000

Show Suggested Answer

Suggested Answer: C

by Luisa at Apr 29, 2025, 08:51 PM

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