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Old 03-04-2014, 08:05 PM
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Form 712 Life Insurance Statement

Is it required to file form 712 along with a gift tax return for a decedent that was making gifts over the gift exemption amount to an irrevocable trust to pay premiums on an insurance policy where the decedent was the insured?



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Old 03-04-2014, 10:22 PM
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Originally Posted by FBN2014 View Post
Is it required to file form 712 along with a gift tax return for a decedent that was making gifts over the gift exemption amount to an irrevocable trust to pay premiums on an insurance policy where the decedent was the insured?
I guess so. Form 712 reports the value of life insurance policies for estate tax purposes;for life insurance policy values as of the date of the insured’s or policy owner's death, or at a time a life insurance policy is transferred as a gift. If there was life insurance in effect, the executor must obtain a filled-out copy of IRS F 712 from the insurance company. The insurer must specify whether the deceased previously had owned the policy, but transferred it to another person less than three years before death. If so, the benefits will still be considered part of the estate. This rule is designed to prevent "death-bed transfers" intended solely to avoid estate tax. For federal, the estate--including the insurance proceeds--would have to be more than $5,120,000 to owe tax.



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