Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

incident of ownership

Read a random definition: lex Gabinia

A quick definition of incident of ownership:

An incident of ownership refers to any right of control that a person has over a life insurance policy that has been transferred. This control allows the policy's proceeds to be included in the person's estate for estate-tax purposes. The rights that come with an incident of ownership include the ability to change the policy's beneficiaries, borrow against the policy, assign the policy, and cancel the policy.

A more thorough explanation:

Incident of Ownership

Incident of ownership refers to any right of control that can be exercised over a transferred life-insurance policy. This control allows the policy's proceeds to be included in a decedent's gross estate for estate-tax purposes. The incidents of ownership include the rights to change the policy's beneficiaries and to borrow against, assign, and cancel the policy.

  • Douglas gave his life-insurance policy to his daughter, but he still retained the incidents of ownership. As a result, the policy proceeds were taxed against his estate.
  • John transferred his life-insurance policy to his wife, but he retained the right to change the policy's beneficiaries. This means that the policy's proceeds will be included in John's gross estate for estate-tax purposes.

The examples illustrate how the incidents of ownership can affect the taxation of life-insurance policy proceeds. If the original policyholder retains any control over the policy, such as the right to change beneficiaries or cancel the policy, the proceeds may be subject to estate tax upon the policyholder's death.

incidenter | incident power

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
LSD+ is ad-free, with DMs, discounts, case briefs & more.