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    Life insurance trust

    Taxpayer owns an existing life insurance policy, which he transfers to irrevocalble life insurance trust.

    Life insurance company provides the following values:

    Account value: $125,000

    surrender charge: $10,000

    cash surrender value: $115,000

    current death benefit: $ $1,000,000

    for gift tax purposes, what is the amount of gift that needs to be listed on form 709?

    #2
    Originally posted by KWF View Post
    Taxpayer owns an existing life insurance policy, which he transfers to irrevocalble life insurance trust.

    Life insurance company provides the following values:

    Account value: $125,000

    surrender charge: $10,000

    cash surrender value: $115,000

    current death benefit: $ $1,000,000

    for gift tax purposes, what is the amount of gift that needs to be listed on form 709?
    I have always used Cash Surrender Value.
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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