medium · Certified Financial Planner Professional Conduct

To preserve the income tax exclusion on the death benefit under the transfer-for-value rule (Section 101), the policy should be transferred to which of the following?

1. A business competitor to settle a legal dispute.
2. A neighbor in exchange for the neighbor paying the outstanding policy loan.
3. A partner of the insured in a valid business partnership.
4. A co-shareholder in a corporation where the insured is also a shareholder.

Sign up free to see the explanation and track your rank →

All Professional Conduct questions · Certified Financial Planner study guide · Certified Financial Planner glossary · Certified Financial Planner flashcards