FHCE 4220 Chapter 11/12/13 Questions UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Jack purchased a life insurance policy on his own life and always included in Jack's federal gross income
never designated a beneficiary. In this case,
the life insurance policy death benefit is:
Colleen transferred ownership of a whole life insurance Always included in Colleen's federal gross estate.
policy on her life to an Irrevocable Life
Insurance Trust (ILIT) six years ago and retained the right
to borrow against the policy. When Colleen
dies, the proceeds of the life insurance policy are:
Carol and Joe, unrelated business partners, began The death benefit of the life insurance policy on Carol's life, owned by Joe,
operating a drug store in southern Florida. They is excluded from
funded a buy/sell agreement with a cross-purchase life Carol's federal gross estate.
insurance arrangement. Carol purchased a life
insurance policy with Joe as the insured, and Joe
purchased a life insurance policy with Carol as the
insured. If Carol dies, which of the following is/are true?
CORRECT ANSWERS
Jack purchased a life insurance policy on his own life and always included in Jack's federal gross income
never designated a beneficiary. In this case,
the life insurance policy death benefit is:
Colleen transferred ownership of a whole life insurance Always included in Colleen's federal gross estate.
policy on her life to an Irrevocable Life
Insurance Trust (ILIT) six years ago and retained the right
to borrow against the policy. When Colleen
dies, the proceeds of the life insurance policy are:
Carol and Joe, unrelated business partners, began The death benefit of the life insurance policy on Carol's life, owned by Joe,
operating a drug store in southern Florida. They is excluded from
funded a buy/sell agreement with a cross-purchase life Carol's federal gross estate.
insurance arrangement. Carol purchased a life
insurance policy with Joe as the insured, and Joe
purchased a life insurance policy with Carol as the
insured. If Carol dies, which of the following is/are true?
