Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

26. Sam has applied for a life insurance policy where he will be the policy owner and life insured. He is trying to decide between

image text in transcribed
26. Sam has applied for a life insurance policy where he will be the policy owner and life insured. He is trying to decide between naming his sister, Marie, as the beneficiary of the policy or naming his estate as beneficiary and then providing a bequest to Marie through his will. To help Sam in his decision, identify which of the following statements is/are true? 1. If Sam's estate needs liquidity, naming the estate will provide the estate with cash upon satisfactory proof of Sam's death. 2. If Sam feels individuals may contest his will, he can ensure that Marie will receive the full insurance proceeds by naming her as beneciary in the insurance policy. 3. By naming his estate as beneficiary, Sam will protect the insurance proceeds from any of his creditors. 4. By naming Marie as beneficiary, Sam will lose his privacy because the insurance carrier must provide Sam's estate with details of any insurance proceeds paid to a named beneficiary. A. 3 only. B. 3 and 4 only. C. 1 and 2 only. D. 1, 2 and 4 only

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian Edition

1119497043, 978-1119497042

More Books

Students also viewed these Accounting questions

Question

At which conferences do students regularly present?

Answered: 1 week ago