68. Which circumstance(s) could cause life insurance proceeds to be included in the decedent’s estate? a. The decedent at death possessed an incident of ownership in the policy. b. The proceeds of the policy are paid to the executor of the decedent’s estate. c. There is a transfer of ownership within three years of death (within certain guidelines). d. All of the above. e. Both a and b only
Any time that an insured possesses ownership of a life insurance policy, the proceeds will be included in their estate for estate tax purposes. If an individual transfers assets for less than their fair market value for the sole purpose of removing them from his or her estate, it may cause the individual to be ineligible for Medicaid benefits within a certain time period following the asset transfer. Answer = A & B
