1. In which of the following situations would life insurance policy proceeds be included in an...
1. In which of the following situations would life insurance policy proceeds be included in an insured’s gross estate for federal tax purposes
I. The policy beneficiary is the insured’s estate II. The insured died 25 months after transferring all incidents of ownership in the policy to his sister
A. I only
B. II only
C. Both I and II D. Neither I nor II
Homework Answers
In both the situations the policy beneficiary is the insured's estate and the insured dies 25 months after transferring all incidents of ownership in the policy to his sister would life insurance policy proceeds be included in an insured's gross estate for federal tax purposes. Hence, option(C) i.e both I and II is correct.
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