In order to avoid inclusion of the proceeds of life insurance policies in the gross estate for federal estate tax purposes, policies are often transferred by gift during life. If transferred more than three years before death, the proceeds are ordinarily not included in the gross estate. However, assignment of a life insurance policy without retaining incidents of ownership constitutes a gift for federal gift tax purposes. Payment of life insurance premiums on a policy owned by another is a gift of the premium amount.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.