Mike makes the following transfers:
–2 years ago:
• Life insurance policy on his life to his cousin, $1M DB, $250 CSV
• $100,000 Stock Portfolio to his sister
• $50,000 RV to his son
• Paid gift taxes of $55,000
–Last year:
• $50,000 cash to brother
• Paid $10,000 in gift taxes
• He died this year owning a $250,000 home ($100,000 basis) tenancy by the entirety, $50,000 stock portfolio, $500,000 in his 401K with his wife names as the beneficiary, a $50,000 car, and $25,000 in cash.
1. Calculate his gross estate.
2. What if he would have sold the life insurance policy to his cousin?