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LSDefine

Simple English definitions for legal terms

incident of ownership

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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

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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