Corporation has purchased a key person life insurance policy on its President, a 51% shareholder. President dies. What impact does the key person policy have in determining the value of the President’s gross estate?

Corporation has purchased a key person life insurance policy on its President, a 51% shareholder. President dies. What impact does the key person policy have in determining the value of the President’s gross estate?

A – 51% of the death benefit proceeds will be included in the President’s gross estate

B – 51% of the death benefit proceeds will determine the value of the corporate stock to be included in the President’s gross estate

C – Since the corporation owned the policy, there is no impact on the gross estate

D – As long as the key person is payable to the President’s personal beneficiary, no portion of the death benefit proceeds will be included in the President’s gross estate

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