Sentences with phrase «deceased was the owner of the policy»

While life insurance death benefits are generally excluded from income tax to the beneficiary, they are included as part of the estate of the deceased if the deceased was the owner of the policy at the time of death.

Not exact matches

If you are involved in a business with a partner, it's possible that you have a buy / sell agreement in which each business owner purchases a life insurance policy on the other owner and then uses the death benefit to buy out the deceased owner's share of the business.

If you are involved in a business with a partner, it's possible that you have a buy / sell agreement in which each business owner purchases a life insurance policy on the other owner and then uses the death benefit to buy out the deceased owner's share of the business.

Proceeds from an insurance policy can be used to train a successor for a deceased key person or to purchase a business owner's shares in the event of his or her death.

Life insurance is frequently used for buy - sell arrangements, under which the proceeds of a policy are used to buy out the deceased owner's interest and compensate their heirs.

Estate inclusion can be avoided if the owner of the life insurance policy is someone other than the deceased, however; this assignment must have occurred more than three years prior to the date of death, or the IRS will still consider the deceased as the policy owner for estate tax purposes.

If the deceased person was the owner of the life insurance policy at the time of his death, then the death benefits obtained from the policy will be regarded as a part of his estate.

If the policy is surrendered during the life of the contract the owner will receive the sum of the cash surrender value, even though the insured is not deceased.

In the event of the death of an owner, the benefit collected by the company from the insurance policy is used to buy - out the deceased owner's share of the business from the insured's estate.

Unless the policy owner changes the beneficiary, or the primary beneficiary is deceased before the life insurance policy owner that is the person or group of people who will receive the settlement.