Tax Facts

171 / How are life insurance paid-up additions purchased with dividends treated for estate tax purposes?

Updated: October 02, 2024 at 01:53 PM
They are treated in the same manner as other insurance. Proceeds are includable in the insured’s estate if the proceeds are payable to or for the benefit of the insured’s estate, or if the insured has any incidents of ownership in the policy at the time of his or her death ( Q 81).1




1.     IRC § 2042.


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