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Question 13: Which of the following life insurance settlement options will qualify for the federal estate tax
marital deduction?
1.Proceeds left to the surviving spouse under the interest option, with interest payable to the
surviving spouse who has the unrestricted right to withdraw proceeds and with any proceeds not
withdrawn payable equally to her children per stirpes
2.Proceeds left to the surviving spouse under an installment option, with any installments remaining
at her death to be commuted and paid to her estate
A. Both 1 and 2
B. 2 only
C. 1 only
D. Neither 1 nor 2
Correct Answer: A

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