incident of ownership
- Any control exercised over a life insurance policy, such as altering the list of beneficiaries, which may result in the policy's value being included in the gross estate of a deceased policyholder for determining estate tax
- The tax attorney explained that any incident of ownership could impact the estate's value for tax purposes.
- She needed to understand the implications of the incident of ownership over her life insurance policy before making changes.
- Understanding the concept of incident of ownership proves vital in estate planning to minimize tax liabilities.
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