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Author Question: Brad owns a cash value life insurance policy. Last year, the cash value increased by 300. Brad ... (Read 122 times)

savannahhooper

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on: Jul 11, 2018
Brad owns a cash value life insurance policy. Last year, the cash value increased by 300. Brad received 100 in policyowner dividends on the policy last year. Brad was the beneficiary named in his grandmother's 50,000 life insurance policy.
 
  When she died this past year, Brad received 50,000. How much taxable income relating to life insurance must Brad report for federal income tax purposes?
  A) 0
  B) 100
  C) 400
  D) 50,400

Question 2

Lisa does not want her life insurance policy included in her gross estate when she dies. Lisa can remove the life insurance policy from her estate if she does which of the following more than 3 years before she dies?
 
  A) borrow the cash value of the policy
  B) make an absolute assignment of the policy to someone else
  C) change the beneficiary to someone who does not have insurable interest
  D) select a lump sum settlement option and name her estate the beneficiary


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CourtneyCNorton

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Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: A

Answer to Question 2

Answer: B


savannahhooper

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Reply 2 on: Jul 11, 2018
Thanks for the timely response, appreciate it

tkempin

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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