American College Exam HS330 Topic 4 Question 102 Discussion

Actual exam question for American College's HS330 exam

Question #: 102
Topic #: 4

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not withdrawn payable equally to her children per stripes

II. 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

Al only

BII only

CBoth l and ll

DNeither I nor II

Show Suggested Answer

Suggested Answer: D

by Harley at Oct 18, 2024, 05:15 AM

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Rex

1 months ago

I heard the IRS is offering a special deduction for anyone who can correctly answer this question without falling asleep.

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Carey

19 days ago

A) I only

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Glennis

1 months ago

I'm so tired of these life insurance settlement questions. Can we just get a multiple-choice question about the latest celebrity gossip instead?

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Chanel

1 months ago

Oh, this is a tricky one! I'm going to go with Option D just to be safe. I don't want to risk getting it wrong and having the IRS knocking on my door.

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Eva

2 months ago

I'm leaning towards Option B. The installment option where the remaining installments are paid to the surviving spouse's estate seems to be the only one that qualifies.

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Jerry

9 days ago

I agree, the installment option seems to be the one that qualifies.

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Alysa

18 days ago

I think Option B is the correct one.

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Patria

2 months ago

Why do you think that? Can you explain your rationale?

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Lanie

2 months ago

Option C seems right, since the life insurance proceeds left to the surviving spouse under both the interest and installment options would qualify for the federal estate tax marital deduction.

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