Which of the following can lead to estate taxes being applied to an insurance policy?

The application of estate taxes to an insurance policy is primarily influenced by whether the benefits of the policy are considered part of the insured's estate upon their death. If the death benefits from an insurance policy are included in the insured's estate, then those benefits can be subject to estate taxes. This typically occurs when the policy owner also has incidents of ownership in the policy at the time of death or when the policy is payable to the estate itself.

When the death benefit is included in the estate, it increases the overall value of the estate and can thereby exceed the estate tax exemption threshold, leading to potential tax liabilities. The inclusion of these benefits in the estate is a key factor in determining tax implications, highlighting the importance of estate planning in relation to life insurance.

Other options do not directly result in estate tax implications in the same way. Naming a relative as a beneficiary does not inherently trigger estate taxes, as the taxes depend on the ownership and control aspects rather than merely the relationship to the beneficiary. The location of the insurer does not affect estate taxation; estate taxes are determined by the laws of the deceased's state of domicile rather than where the insurer is located. The premiums paid exceeding a limit doesn't directly influence whether estate taxes apply to the death benefit, though