After you have completed this course you will be able to do the following:

• Identify the two major estate planning goals for life insurance in the estate planning process.

• Describe the circumstances under which life insurance proceeds will be included as part of the insured’s gross estate.

• Discuss the generation-skipping transfer tax implications of life insurance.

• Explain the federal gift tax implications of making a gift of a life insurance policy.

• Discuss the practical uses for life insurance in the estate planning context, including the following:

  – gifts of policies to trusts
  – grandparent-grandchild trusts
  – estate liquidity
  – equity of inheritance
  – nonworking spouse insurance
  – the second-to-die policy