For estate tax purposes, life insurance
Selected
Answer:
held by a revocable life insurance trust is includable in
the grantor's estate
Question
... [Show More] 2
0 out of 2 points
Which of the following goals can be achieved by the use of key employee
life insurance?
Assure shareholders of a public corporation that the price
of the stock will not plummet at the death of a president
or other senior executive.
Question 3
0 out of 2 points
Which of the following circumstances, if true, would make a nonqualified
deferred compensation plan inadvisable?
Answer
s:
the business is not likely to survive the death, disability or
retirement of its key employees
Question 4
0 out of 2 points
All of these recent changes in qualified plan pension law have made
nonqualifying deferred compensation plans more attractive, except
easier nondiscrimination rules place fewer restraints on
employer's discretion
Question 5
2 out of 2 points
Which of the following types of qualified plans provides the most
advantageous treatment of life insurance?
Selected
Answer:
defined benefit
plan
Question 6
INS 3303 Life Ins 2nd half Final Study
Guide
0 out of 2 points
Which of the following statements regarding the tax implications of key
employee life insurance is correct?
Answer
s:
The sale of key employee insurance to the insured employee is
exempt from the transfer for value rule.
Question 7
0 out of 2 points
Which of the following is one of the key advantages of using life insurance
in a qualified plan?
the ability of an employer to provide employees with retirement benefits
on more favorable terms than would be available through individually
purchased products
Question 8
0 out of 2 points
Once a grantor transfers assets to a revocable living trust, any income
losses, deductions, or credits become taxable to the trust, even if the
grantor is the trustee.
Fals
e
Question 9
0 out of 2 points
In order for a participant to avoid current taxation of his benefits under a
nonqualified deferred compensation plan, he must not be deemed to have
constructive receipt of income under the plan. Constructive receipt can be
avoided if certain provisions are included in the design of the plan. Which
one of the three following provisions will not avoid constructive receipt?
a provision that permits the employee to place his benefits beyond the
reach of the employer's creditors if he suspects that the employer is in
financial difficulty
Question 10
0 out of 2 points
The life insurance products used to fund a qualified plan may provide
employees with retirement benefits at more favorable terms than
individual contracts.
Answer
s:
True
Question 11 [Show Less]