I have a client which is an undocumented immigrant and has a $1,500,000 Term Life Insurance policy.
At his death the life insurance will be part of his estate with a $60,000 exclusion and
the rest of the money subject to a 40% estate tax. Is that correct?
At this point, can he transfer the policy into the ILIT and wait the 3 years rule to take the policy out of his estate?
Does the policy will have a in any circumstances any “Gift Tax” consequences?
Please advise.
Thank you.