Monday, February 06, 2006
How Life Insurance Is Valued For Estate Tax Return
To understand how life insurance is valued for estate tax returns, begin with the face value of the policy. The face amount of the insurance is usually the figure used in preparing an estimate of potential estate taxes.
However for precise planning and, upon death, when the estate tax return is filed, the final figure is determined by taking the face amount and adding any paid-up additional insurance, accumulated dividends (with interest) and post death dividends, and then deducting any policy loans. The final amount is then included on the federal estate tax return. This amount will generally be provided by the insurance company on what is universally called "Form 712." The beneficiary of the policy or the lawyer should always request the insurance company issue Form 712.
How Life Insurance Is Valued For Estate Tax Return
Source: Insurance News Net
However for precise planning and, upon death, when the estate tax return is filed, the final figure is determined by taking the face amount and adding any paid-up additional insurance, accumulated dividends (with interest) and post death dividends, and then deducting any policy loans. The final amount is then included on the federal estate tax return. This amount will generally be provided by the insurance company on what is universally called "Form 712." The beneficiary of the policy or the lawyer should always request the insurance company issue Form 712.
How Life Insurance Is Valued For Estate Tax Return
Source: Insurance News Net
Permalink posted by armandn @ 1:18 PM 
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