837 / When are life insurance proceeds includable in a decedent’s gross estate under IRC Section 2042?

IRC Section 2042 deals specifically with the includability of life insurance proceeds in the gross estate of the insured. The proceeds are includable in the insured’s gross estate under IRC Section 2042 if they are as follows:

(1)     Receivable by or for the benefit of insured’s estate; or

(2)     Receivable by a beneficiary other than the insured’s estate and the insured possessed at his death any of the incidents of ownership in the policy (whether exercisable by the insured alone or only in conjunction with another person).