Estate planning

True or False: 1. An estate qualifies for a marital deduction when a surviving spouse receives a terminable interest from a life-settlement payout option. 2. With permanent insurance, the policy owner can borrow against the cash value in the form of interest bearing loans or as surrender proceeds. 3. Dylan purchased a $250,000 term insurance policy on his own life, and then transferred the policy to his wife Nora two months later. The couple's daughter Morgan is the beneficiary of the policy. At Dylan's death, the death benefit payable to Morgan is considered a gift from Nora, subject to gift tax. Multiple Choice: 4. Henry is a single businessman with inadequate liquidity to cover estate administrative expenses, debts and taxes at his death. He plans to purchase a life insurance policy which provides a tax-free investment and an immediate cash value. Which type of policy should Henry purchase? I A. Survivorship life insurance B. Single premium whole life C. Decreasing term D. Straight whole life