Life Insurance And Form 712: What You Need To Know

IRS Form 712 is a tax form that is used to report the value of a life insurance policy after the insured person has died. It is typically the executor of the will who is responsible for filing the form, along with an estate tax return. The form is used to identify the face amount of the policy, any accumulated dividends, terminal dividends, any outstanding loans, the amount of the proceeds, as well as personal information on the insured.

The role of Form 712

IRS Form 712 is an informational tax form that is used to report the value of life insurance policies as part of an estate tax return. It is not filed by itself but as an accompaniment to other estate tax forms, such as IRS Form 706: United States Estate (and Generation-Skipping Transfer) Tax Return.

Form 712 is used to identify the policy's face amount, any accumulated dividends, terminal dividends, any outstanding loans, the amount of the proceeds, as well as personal information on the insured for estate tax filing purposes. It contains critical information for individuals who are planning to bequeath a significant estate and who own life insurance outside their taxable estate, or when changing the ownership of an existing life insurance policy outside of their taxable estate.

Form 712 should be included with any Form 709 Gift Tax Return related to certain policy transfers during the insured’s lifetime to establish the value of the gift.

Who files Form 712

IRS Form 712 is an informational tax form that is used to report the value of life insurance policies as part of an estate tax return. It is not filed by itself, but as an accompaniment to other estate tax forms, most notably IRS Form 706: United States Estate (and Generation-Skipping Transfer) Tax Return.

The form is typically filed by the executor of the will, who manages the financial affairs of the deceased. If multiple life insurance policies were in effect at the time of death, the executor will be required to complete a separate form for each policy. The purpose of the Federal Form 712 is to identify the policy's face amount, any accumulated dividends, terminal dividends, any outstanding loans, the amount of the proceeds, as well as personal information on the insured for estate tax filing purposes.

Form 712 should be included with any Form 709 Gift Tax Return related to certain policy transfers during the insured’s lifetime to establish the value of the gift. It is also included with the Form 706 Estate Tax Return after death for all policies insuring the life of the decedent.

The form isn’t automatically sent out to the beneficiary/estate for every policy since most estates fall within the exemption amount and aren’t required to file a Form 706 U.S. Estate Tax Return.

When Form 712 is filed

Form 712 is an informational tax form that is used to report the value of a life insurance policy's proceeds after the insured dies. It is filed by the executor of the will, along with an estate tax return if needed. The form is not filed by itself, but as an accompaniment to other estate tax forms, most notably Form 706: United States Estate (and Generation-Skipping Transfer) Tax Return.

Form 712 should be filed when an individual is planning to bequeath a significant estate and owns life insurance outside their taxable estate, or when changing the ownership of an existing life insurance policy outside of their taxable estate. It should also be included with any Form 709 Gift Tax Return related to certain policy transfers during the insured’s lifetime to establish the value of the gift.

After the death of the insured, estates that need to file an estate tax return will need to ask the insurance company to provide a Form 712 for each policy insuring the decedent. The form isn’t automatically sent out to the beneficiary/estate for every policy since most estates fall within the exemption amount and aren’t required to file a Form 706 U.S. Estate Tax Return.

If multiple life insurance policies were in effect at the time of death, the executor will be required to complete a separate form for each policy. The purpose of Form 712 is to identify the policy's face amount, any accumulated dividends, terminal dividends, any outstanding loans, the amount of the proceeds, as well as personal information on the insured for estate tax filing purposes.

What Form 712 reports

Form 712 is an informational tax form that is used to report the value of life insurance policies as part of an estate tax return. It is not filed by itself, but as an accompaniment to other estate tax forms, most notably Form 706: United States Estate (and Generation-Skipping Transfer) Tax Return.

The purpose of Form 712 is to identify the policy's face amount, any accumulated dividends, terminal dividends, any outstanding loans, the amount of the proceeds, as well as personal information on the insured for estate tax filing purposes. It is typically the executor who manages the financial affairs of the deceased and files the form, along with an estate tax return if needed. If multiple life insurance policies were in effect at the time of death, the executor will be required to complete a separate form for each policy.

Form 712 should be included with any Form 709 Gift Tax Return related to certain policy transfers during the insured’s lifetime to establish the value of the gift. It is also required when changing the ownership of an existing life insurance policy outside of the taxable estate.

How to file Form 712

IRS Form 712 is an informational tax form that is used to report the value of life insurance policies as part of an estate tax return. It is not filed by itself, but as an accompaniment to other estate tax forms, such as IRS Form 706: United States Estate (and Generation-Skipping Transfer) Tax Return.

To file Form 712, you must first understand its purpose. The form reports the value of a life insurance policy's proceeds after the insured dies for estate tax purposes. It is typically the executor's responsibility to file the form, along with an estate tax return if needed. If multiple life insurance policies were in effect at the time of death, the executor will need to complete a separate form for each policy.

The form identifies the policy's face amount, any accumulated dividends, terminal dividends, any outstanding loans, the amount of the proceeds, as well as personal information on the insured for estate tax filing purposes. It should be noted that the form is not automatically sent out to the beneficiary/estate for every policy since most estates fall within the exemption amount and are not required to file a Form 706 U.S. Estate Tax Return.

To file Form 712, you will need to gather the necessary information, including the policy's face amount, any accumulated dividends, terminal dividends, outstanding loans, and the amount of the proceeds. You will also need personal information on the insured, such as their name, address, and Social Security number. Once you have gathered all the required information, you can complete the form and submit it to the IRS along with any other required estate tax forms.

Frequently asked questions