Lila is the owner and beneficiary of a policy on the life of her husband, Austin. Upon Austin's death, the insurance proceeds paid to Lila do not qualify for the marital deduction.

Question

Quizplus · Accepted Answer

The marital deduction applies to transfers between spouses, but life insurance proceeds paid to a beneficiary are not considered a transfer of property for tax purposes and thus do not qualify for the marital deduction.

Lila Is the Owner and Beneficiary of a Policy on the Life