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When an Insured Dies with an Incident of Ownership in a Life

Question 2

Multiple Choice

When an insured dies with an incident of ownership in a life insurance contract:


A) the face amount is included in the gross estate
B) the face amount is not taxed at all due to a loophole in estate tax laws
C) only the cash value at death is included in the estate
D) only is taxed due to the spouse's assumed half ownership

Correct Answer:

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