Tax Facts

208 / How are life insurance proceeds valued for an insured’s estate tax return?

The full face amount plus paid-up additions, accumulated dividends (with interest thereon), and post-mortem dividends, less policy loans, should be included in Schedule D of the estate tax return.1 The date-of-death value is used, regardless of whether the executor elects the optional alternative valuation date.2

1. Estate Tax Form 706, Schedule D, and Form 712. Treas. Reg. § 20.2042-1(a)(3).

2. Rev. Rul. 58-576, 1958-2 CB 625.

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