209 / If the amount of life insurance proceeds collectible from the insurer is not determinable when the estate tax return is filed, what amount is reportable on the return?

The unsatisfactory answer appears to be that a determination of the fair market value of the insurance claim or claims at the date of death or at the alternate valuation date must be made from the facts and circumstances of the particular case.¹ This problem is most likely to be encountered when an insured’s death occurs during the policy’s contestable period and there is a question whether the insured made material misrepresentations in applying for the insurance or whether the insured’s death resulted from suicide.