Question 151.25 / 1.25 ptsProvided that a survivorship clause does not require the surviving spouse to survive the decedent for more than nine months, any transfers subject to the survivorship clause will qualify for the unlimited marital deduction.
A. TrueCorB. False
Question 161.25 / 1.25 ptsOverqualification means that the decedent used too much of his applicable estate taxcredit.
Module 13
Question 11.11 / 1.11 ptsWhich of the following is not a reason that the death benefit of a life insurance policy would be included in a decedent’s gross estate?
Question 21.11 / 1.11 ptsWhich of the following applies to the income tax or estate tax treatment of life insurance policy proceeds?
Question 31.11 / 1.11 ptsWhich of the following are included in the gross estate:
A. Proceeds from a life insurance policy owned by the decedent insured that was assigned to an ILIT two years before death of the insured.B. A secular trust where the only income beneficiary was the decedent’s spouse.C. Property where the decedent had a reversionary interest of less than 1% of the value.Correct!D. Gift taxes paid two years prior to the decedent’s date of death for gifts made four years earlier.
Question 40 / 1.11 ptsSome reasons to use life insurance to fund business continuation agreements include which of the following:1. It provides sufficient assets for the buyer to perform on the contract.2. Insurance protects the company and its shareholder because the IRS cannot challenge the value of stock if provided for in a Shareholders Agreement (SHA).3. The insurance gives the agreement efficacy. No money . . . No deal.4. The insurance strengthens the commitment of the buyer when it must follow through on the agreement.
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