Sentences with phrase «gross estate of the insured»
As mentioned above under the «common life insurance misconception» header almost all life insurance death benefit proceeds are included in the federal gross estate of the insured.
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If you are both the owner and insured of a life insurance policy, the death benefit will be included in your gross taxable estate.
However — If the owner of the policy was also the primary insured, the amount of life insurance will be included in the gross estate for estate tax purposes.
If you are both the owner and insured of a life insurance policy, the death benefit will be included in your gross taxable estate.
But, because the insured has an incident of ownership through the revocable trust, the death benefit is includable in the insured's gross estate and could be accessible to the estate's creditors.
However, when life insurance is owned by an ILIT, the proceeds from the death benefit are not part of the insured's gross estate and thus not subject to state and federal estate taxation.
If the policy is instead owned by an irrevocable trust as mentioned above, there is no inclusion in the gross estate, and there is an embedded mechanism via the trust language for continuation of the policy if the insured becomes incompetent.
If you are the owner and insured, then the death benefit of a life insurance policy will be included in your gross estate.