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Which of the following life insurance settlement options will qualify for the federal estate tax marital deduction?
l. Proceeds left to the surviving spouse under the interest option, with interest payable to the surviving spouse who has the unrestricted right to withdraw proceeds and with any proceeds not withdrawn payable equally to her children per stripes
ll.Proceeds left to the surviving spouse under an installment option, with any installments remaining at her death to be commuted and paid to her estate
Suggested Answer: C
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22 comments · newest first
TR
Trinidad
2 days ago
I disagree, I lean towards option B. Installments can be beneficial for the estate.
ED
Edelmira
7 days ago
I think it's option A. The interest option seems more favorable.
LA
Laurene
12 days ago
I see the point for B. Installments can protect the estate better.
SA
Samira
18 days ago
I’m with A too. The unrestricted withdrawal is key for the spouse.
JO
Johnna
23 days ago
I feel D is correct. Neither option seems to meet the criteria.
LO
Loren
28 days ago
Both options have merits, but I’d go with C. They both qualify.
AL
Albina
1 month ago
I disagree, I lean towards B. Installments are safer for the estate.
BI
Billy
1 month ago
I think it's option A. The interest option seems more favorable.
DE
Desmond
1 month ago
Wait, are you sure about that? Sounds tricky!
RO
Ronny
2 months ago
Definitely leaning towards A) I only.
JA
Janessa
2 months ago
Surprised that both options could qualify!
YU
Yuette
2 months ago
I disagree, it's C) Both I and II.
TE
Tennie
2 months ago
I think it's A) I only.
SH
Shaquana
2 months ago
Sounds too complicated to be true!
BI
Billy
2 months ago
Wait, are both options really valid?
NI
Niesha
3 months ago
Not so sure about option II though.
BE
Bernardine
3 months ago
Definitely agree with that!
FL
Flo
3 months ago
I think option I qualifies for the marital deduction.
VA
Vallie
3 months ago
I feel like both options could qualify, but I need to double-check the specifics about how proceeds are handled after the spouse's death.
CH
Chauncey
3 months ago
I’m a bit confused about the unrestricted right to withdraw in option I. Does that affect the marital deduction eligibility?
NI
Nilsa
4 months ago
I think I practiced a similar question where the installment option was discussed, and it seemed like it could qualify for the deduction.
JE
Jenelle
5 months ago
I remember studying the marital deduction rules, but I'm not sure if the interest option qualifies since it involves children too.