Create life insurance gift trust to benefit

Assignment Help Financial Management

Reference no: EM131865570

1. Jamal made an irrevocable assignment of a life insurance policy to create a life insurance gift trust to benefit his fourteen year old son, Keetan. Jamal died two years after the transfer. Which of the following is true?

a. Keetan cannot access trust proceeds until he is 21

b. Jamal’s purchase of the insurance is considered a gift of “future interest” that qualifies for the annual gift exclusion

c. The value of the policy will be included in Jamal’s estate

d. The trust is exempt from the Generation Skipping Tax

2. In general, for which of the following reasons is life insurance an estate planning tool?

It is an asset not subject to probate.

It is an asset not subject to income tax.

It is an asset not subject to estate tax (when not listed as beneficiary).

a. I only

b. I and II

c. I and II and III

d. III only

Reference no: EM131865570

Questions Cloud

Find the gauge pressure at the bottom of the tank : A storage tank 26 m high is filled with gasoline. (Assume the tank is open and exposed to the atmosphere at the top.)

Conduct a literature review on the selected topic : Conduct a literature review. (see Bem, 2016). You will review and summarize relevant theory and research in order to defend a particular position (your thesis).

What amount should coronado report as total income tax : At December 31, 2017, Coronado Inc. had a deferred tax asset of $27,900. What amount should Coronado report as total 2018 income tax expense

Discuss the curative factors in group counseling : Discuss the curative factors in group counseling and how these might be impacted in the vignette (1-2 paragraphs).

Create life insurance gift trust to benefit : Jamal made an irrevocable assignment of a life insurance policy to create a life insurance gift trust to benefit his fourteen year old son,

What force must the second exert to keep the door : What force must the second exert to keep the door from moving? Assume friction is negligible.

Unethical employee behavior and how to mitigate the risk : Describe two possible ethical issues that Sustainable Goods (company from your Final Project) could face based on cultural differences

Determining the projectile motion : If a rocket is fired straight upward, your distance to the rocket first increases, then decreases. If you fire the rocket outward (say at 30o to the horizontal)

Develop a treatment plan for milo : Describe any ethical and legal considerations that should be taken into account regarding treatment planning and treatment in this case.

User Account

All Pages