State RegulationsOH specificDifficulty 2/5
A Columbus man insures his wife's life for his own sole use and benefit under a lawful spousal policy. When proceeds are payable to him as the surviving spouse, how are they treated under ORC 3911.11?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
ORC 3911.11 lets a married person insure the spouse's life for their own sole use and benefit, and proceeds payable to the surviving spouse are free from the claims of the spouse's representatives or creditors - protecting the surviving spouse's benefit from the deceased spouse's estate creditors.
Why the other options are wrong
- A) The statute addresses creditor protection, not income taxation of the proceeds.
- B) The proceeds are expressly shielded from the deceased spouse's representatives and creditors.
- C) Proceeds payable to a named surviving spouse do not require probate to reach the named payee.
Memory hook
Spousal policy proceeds: the widow's shield against creditors.