A Taxpayer Must Not Retain Any Incidents of Ownership in a Life

question 39

True/False

A taxpayer must not retain any incidents of ownership in a life insurance policy on his or her life to have it excluded from his or her taxable estate.

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Definitions:

Villi

Small, finger-like projections that extend into the lumen of the small intestine, increasing its surface area for nutrient absorption.

Small Intestine

A part of the gastrointestinal tract following the stomach and duodenum, where most of the end absorption of nutrients and minerals from food takes place.

Digestive System

The complex system of organs and glands responsible for the breakdown and absorption of food, extracting nutrients and eliminating waste.

Gallbladder

A small organ situated beneath the liver, responsible for storing and concentrating bile.