If a Survivorship Policy Is Purchased in the Name of an Irrevocable

question 11

Multiple Choice

If a survivorship policy is purchased in the name of an irrevocable life insurance trust, then

• A) The proceeds are exempt from both estate and income tax
• B) The proceeds are exempt from income tax only
• C) The proceeds are exempt from estate tax but not from income tax
• D) The proceeds are fully taxable
• E) The proceeds are taxed in a manner all nonprobate assets are taxed

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Definitions:

Prices

The amount of money or goods asked or given in exchange for goods or services.

Herfindahl-Hirschman Index

A measure used to determine the level of competition within an industry, calculated by summing the squares of the market shares of all firms in the industry.

Strategic Situations

Scenarios or contexts where the outcomes for participants depend significantly on the actions and decisions of all involved parties, often analyzed in game theory.

Herfindahl-Hirschman Index

A measure used to calculate market concentration, indicating the level of competition within an industry by summing the squares of the market shares of all firms within the industry.