Tax Facts

622 / What are the estate tax results when a decedent has been receiving payments under an optional settlement of endowment maturity proceeds or life insurance cash surrender value?

Updated: December 18, 2024 at 08:54 AM
Life insurance or annuity proceeds payable to a surviving spouse qualify for the marital deduction if certain conditions are met ( Q 191). If proceeds used the marital deduction in the first spouse’s estate and the contract provides a survivor benefit to the surviving spouse’s estate or to a person surviving the surviving spouse, then the proceeds usually are includable in the surviving spouse’s estate.


If the surviving spouse receives a straight life annuity, there is no property interest remaining at his or her death to be included in his or her gross estate.


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