What can a policyowner change a revocable beneficiary?
With a revocable beneficiary designation, the policyowner may change the beneficiary at any time without notifying or getting permission from the beneficiary.
How much of personal life insurance premiums is usually deductible?
What percent of personal life insurance premiums is usually deductible for federal income tax purposes? 0% . ( In general, personal life insurance premiums are NOT deductible for federal income tax purposes.)
How would a contingent beneficiary receive the policy proceeds in an accidental death and?
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? A contingent beneficiary will receive the policy proceeds if the primary beneficiary dies before the insured's death.
What is the common disaster clause?
Very generally, a common disaster clause provides that your spouse or other primary beneficiary will inherit your property only if he or she outlives you for a specified period (usually 30 to 90 days). Otherwise, your assets will pass based on the assumption your spouse or other primary beneficiary died before you.Mar 30, 2012
What type of insurance is tax-deductible?
Health insurance premiums are deductible on federal taxes, in some cases, as these monthly payments are classified as medical expenses. Generally, if you pay for medical insurance on your own, you can deduct the amount from your taxes.Apr 4, 2022
Which insurance premiums are tax-deductible?
For example, you can deduct the amount you spent on your health insurance premiums if your total healthcare costs exceed 7.5% of your adjusted gross income (AGI) or if you're self-employed.Jun 21, 2019
What statement is true regarding a minor beneficiary?
Which statement is true regarding a minor beneficiary? In most cases, insurers require that a guardian be appointed in the Beneficiary clause of the policy or that a guardian be designated in the will.
How do contingent beneficiaries work?
In insurance contracts, a contingent beneficiary is one who benefits when the prior beneficiary of the policy is unable receive the benefit. In Texas, if a beneficiary of a life insurance forfeits one's interest in the policy, the contingent beneficiary named by the insured can receive the proceeds.
What does contingent mean for beneficiaries?
A contingent beneficiary — sometimes called a secondary beneficiary — is the person or organization next in line to receive assets if your primary beneficiary isn't able to. As with primary beneficiaries, you can name contingent beneficiaries in your will or trust, and also for assets that are able to skip probate.Aug 18, 2021
What is a facility of payment clause?
: a clause in an insurance policy permitting the insurer to pay the death benefit to a relative of the insured or to any other person especially by reason of the person's incurring expenses (as funeral expenses) on the insured's behalf.
What does common disaster mean in insurance?
Common Disaster — a situation in which the insured and the beneficiary of a life insurance policy appear to die simultaneously without evidence of who died first.
What is the clause that describes the method of paying the death benefit?
What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident? Common disaster clause.
Answer
D#N#Lump-sum taxes are described as regressive taxes, meaning that the more income one has, the less they pay in proportion of their income to tax. As a result, they all pay the same, which coincides with D.
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Which of the following statements regarding a taxpayer who receives a lump-sum plan distribution consisting at least partially of employer stock is (are) CORRECT?
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ANSWER BOTH STATEMENTS ARE CORRECT 1.The net unrealized appreciation (NUA) portion of a lump-sum distribution stock is taxed at ordinary income tax rates when sold. EXPLANATION view the full answer
What is child support settlement?
Child support, Noncash property settlements, whether in a lump-sum or installments, Payments that are your spouse's part of community property income, Payments to keep up the payer's property, Use of the payer's property, or. Voluntary payments (that is, payments not required by a divorce or separation instrument).
What are the rules for alimony?
Not all payments under a divorce or separation instrument are alimony or separate maintenance. Alimony or separate maintenance doesn’t include: 1 Child support, 2 Noncash property settlements, whether in a lump-sum or installments, 3 Payments that are your spouse's part of community property income, 4 Payments to keep up the payer's property, 5 Use of the payer's property, or 6 Voluntary payments (that is, payments not required by a divorce or separation instrument).
What is separate maintenance?
A payment is alimony or separate maintenance only if all the following requirements are met: The spouses don't file a joint return with each other; The payment is in cash (including checks or money orders); The payment is to or for a spouse or a former spouse made under a divorce or separation instrument; The spouses aren't members of the same ...
Is child support deductible?
Voluntary payments (that is, payments not required by a divorce or separation instrument). Child support is never deductible and isn't considered income. Additionally, if a divorce or separation instrument provides for alimony and child support, and the payer spouse pays less than the total required, the payments apply to child support first.
Can you deduct alimony payments?
Note: You can't deduct alimony or separate maintenance payments made under a divorce or separation agreement (1) executed after 2018, or (2) executed before 2019 but later modified if the modification expressly states the repeal of the deduction for alimony payments applies to the modification.