Tax Facts

171 / How are life insurance paid-up additions purchased with dividends treated for estate tax purposes?

They are treated in the same manner as other insurance. Proceeds are includable in the insured’s estate if the proceeds are payable to or for the benefit of the insured’s estate, or if the insured has any incidents of ownership in the policy at the time of his or her death ( Q 81).1

1.     IRC § 2042.

|
Tax Facts Premium Tools
Calculators
100+ calculators specifically designed to help you easily assist clients with specific planning situations and calculations.
Practice Guidance
Designed to help you discover new ways for which to build and maintain client relationships.
Concepts Illustrated
Specifically designed to help you easily assist clients with specific planning situations and calculations.
Tax Facts Archives
Access to the entire library of Tax Facts dating back to 2012 allowing you to look up the exact tax figures from prior years.