It is often desirable to keep life insurance death proceeds out of the insured’s estate for tax reasons. Which of the following describe(s) a necessary condition for keeping the proceeds out of the insured’s gross estate?

I       The insured must surrender all incidents of ownership.

II      The transfer of incidents of ownership must occur more than three years prior to death.

III     The insured cannot continue to pay premiums on the policy.

I only

II only

I and II only

I, II and III