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Assume Carrie decided to transfer her life insurance policy to an Irrevocable Life Insurance Trust (ILIT) today for the benefit of Kati and Karli. She is concerned that the girls may not receive their fair share of Kenny’s estate now that Kole and Melissa have come along. The ILIT contained a Crummey provision for the benefit of each child. At the time of the transfer, the whole life insurance policy was valued at $50,000, and since Carrie had not made any other taxable gifts during her lifetime, she did not owe any gift tax. If Carrie died 6 months later how much is included in her gross estate at her death?
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