incident of ownership

Definition of "incident of ownership"
  1. 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
How to use "incident of ownership" in a sentence
  1. The tax attorney explained that any incident of ownership could impact the estate's value for tax purposes.
  2. She needed to understand the implications of the incident of ownership over her life insurance policy before making changes.
  3. Understanding the concept of incident of ownership proves vital in estate planning to minimize tax liabilities.

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