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Which one of the following statements identifies a purpose or characteristic of a survivorship life insurance policy?
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- Which of the following life insurance proceeds is not included in the gross estate of the deceased? A. Insurance proceeds with SSS.B. Insurance proceeds where the beneficiary is a third person revocably appointed.C. Insurance proceeds under a group insurance taken out by the employee for himself as beneficiary.D. Insurance proceeds covering the life of the insured decedent where the estate of the deceased, hisexecutor or administrator is the beneficiary whether or not the insured retained the power of revocation.Identify which is taxable? A. Proceeds of life insurance received by heirs B. Excess amount received over premiums paid by insured upon surrender of policy C. Compensation for personal injuries of an employee D. Indemnification for moral damagesAmounts receivable by the estate of the deceased, his executor or administrator as an insurance under policy taken by the decedent upon his own life is: Excluded from the gross estate; Part of the gross estate whether the beneficiary is revocable or irrevocable Part of the gross estate if the beneficiary is revocable Part of the gross estate if the beneficiary is irrevocable
- Which of the following statements is not correct? Proceeds of life insurance policies paid to beneficiaries upon the death of the insured are excluded from gross income regardless of whether the proceeds are received as a single sum or in installments. In case of transfer for a valuable consideration by assignment or otherwise of a life insurance, endowment or annuity contract or any interest therein, only the actual value of such consideration and the amount of the premium and the sums subsequently paid by the transferee are exempt from income tax. O Marriage fees, baptismal offerings, sums paid for saying masses for the dead and other contributions received by a clergyman. evangelist or religious worker for services rendered are taxable income. O Monetization of leave credits of employees who were unable to go on leave due to exigencies of the service constitutes taxable income.Define each of the given and describe the different EXCLUSIONS FROM GROSS INCOME: Proceeds of life insurance policy Amount received by the insured as a return of premium Gift, bequest, or descent Compensation for injuries or sickness Income exempt under treaty Retirement benefits, pensions, gratuities, etc.TRUE OR FALSE: A Registered Retirement Savings Plan is considered to be a spousal Registered Retirement Savings Plan if a spouse or common-law partner has made any contributions to the plan at any time since its inception.
- If insurance proceeds are paid out to the beneficiaries, and the IRS later becomes aware that the benefits were subject to the estate tax: Select one: a. the IRS can follow (and attempt to collect) the life insurance proceeds as far as it can trace them b. the IRS may only collect the amount owed from the executor of the estate. c. the IRS may only collect the amount owed from the executor of the estate and any beneficiaries who received payment. d. the insurer may be liable for the tax owed.life insurance proceeds paid to a beneficiary because of the insured's death is taxable. true or false32. Which one of the following statements correctly identifies a purpose or characteristic of a second-to-die life insurance policy? A) The premium will cost more than the combined premiums for separate policies on all of the insured parties. B) When the insured parties are a husband and wife, a purpose may be to allow the first-to-die spouse to leave everything to the surviving spouse. C) This policy is also known as a split dollar policy. D) This is a type of policy that will pay benefits at the death of the first insured to die.
- TRUE OR FALSE If the insured outlived the life insurance policy, the proceeds shall be taxable to the beneficiary less the total amount of premiums paid to the insurerWhich of the following statements is CORRECT regarding a spousal IRA? a- A spouse may be eligible to contribute to an IRA even if they have no income of their own. b- A spousal IRA is allowed for any filing status. c- The limitation on the amount that can be contributed to a spousal IRA is always the same as that of the working spouse. d- The taxpayer's income is not taken into consideration when establishing a spousal IRA.What is the difference between a testamentary trust and an inter vivos trust? Multiple Choice A testamentary trust is created by a will; an inter vivos trust is created by a living individual. A testamentary trust conveys money to a charity; an inter vivos trust conveys money to individuals. A testamentary trust ceases after a specified period of time; an inter vivos trust is assumed to be permanent. A testamentary trust conveys income to one party and the principal to another, an inter vivos trust conveys all monies to the same party.