An incident of ownership of life insurance is the right of the person holding that title to:
Change the beneficiary of the policy
Transfer the ownership of the policy
Borrow from the policy
Use the collateral of the policy for a loan
Modify the policy
Terminate the policy
When someone has an incident of ownership in life insurance, the proceeds from the policy can be counted as part of the estate. Some people transfer ownership of their life insurance policies to an Irrevocable Life Insurance Trust to avoid estate taxes.
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Change the beneficiary of the policy
Transfer the ownership of the policy
Borrow from the policy
Use the collateral of the policy for a loan
Modify the policy
Terminate the policy
When someone has an incident of ownership in life insurance, the proceeds from the policy can be counted as part of the estate. Some people transfer ownership of their life insurance policies to an Irrevocable Life Insurance Trust to avoid estate taxes.