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:

Psychophysiological Disorders

Physical illnesses that are thought to be caused or exacerbated by mental factors such as stress and anxiety.

Social Conditions

Refers to the societal factors and circumstances that influence individuals' lifestyles, behaviors, and attitudes.

Poverty

A state of economic deprivation, lacking sufficient income to meet basic needs such as food, shelter, and clothing.

Hypersomnolence Disorder

A sleep-wake disorder characterized by an extreme need for extra sleep and feelings of excessive sleepiness.