Lila is the owner and beneficiary of a policy on the life of her husband,Austin.Upon Austin's prior death,the insurance proceeds paid to Lila qualify for the marital deduction.

Question

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Upon the death of Austin, the insurance proceeds paid to Lila do not qualify for the marital deduction because the policy is owned by Lila and not Austin. In order for proceeds to qualify for the marital deduction, the policy must be owned by the deceased spouse and payable to the surviving spouse.

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