Form Sch D Sch D Insurance on the Decedent�s Life

Form 706 (Rev. 9-2009)

Decedent’s Social Security Number

Estate of:

SCHEDULE D—Insurance on the Decedent’s Life
You must list all policies on the life of the decedent and attach a Form 712 for each policy.
Item
number

Description

Alternate
valuation date

Alternate value

Value at date of death

1

Total from continuation schedules (or additional sheets) attached to this schedule
TOTAL. (Also enter on Part 5—Recapitulation, page 3, at item 4.)
(If more space is needed, attach the continuation schedule from the end of this package or additional sheets of the same size.)
(See the instructions on the reverse side.)

Schedule D—Page 15

Form 706 (Rev. 9-2009)

Instructions for Schedule D—Insurance on
the Decedent’s Life
If you are required to file Form 706 and there was any
insurance on the decedent’s life, whether or not
included in the gross estate, you must complete
Schedule D and file it with the return.
Insurance you must include on Schedule D. Under
section 2042, you must include in the gross estate:
● Insurance on the decedent’s life receivable by or
for the benefit of the estate; and
● Insurance on the decedent’s life receivable by
beneficiaries other than the estate, as described
below.
The term ‘‘insurance’’ refers to life insurance of every
description, including death benefits paid by fraternal
beneficiary societies operating under the lodge system,
and death benefits paid under no-fault automobile
insurance policies if the no-fault insurer was
unconditionally bound to pay the benefit in the event of
the insured’s death.
Insurance in favor of the estate. Include on
Schedule D the full amount of the proceeds of
insurance on the life of the decedent receivable by the
executor or otherwise payable to or for the benefit of
the estate. Insurance in favor of the estate includes
insurance used to pay the estate tax, and any other
taxes, debts, or charges that are enforceable against
the estate. The manner in which the policy is drawn is
immaterial as long as there is an obligation, legally
binding on the beneficiary, to use the proceeds to pay
taxes, debts, or charges. You must include the full
amount even though the premiums or other
consideration may have been paid by a person other
than the decedent.
Insurance receivable by beneficiaries other than the
estate. Include on Schedule D the proceeds of all
insurance on the life of the decedent not receivable by
or for the benefit of the decedent’s estate if the
decedent possessed at death any of the incidents of
ownership, exercisable either alone or in conjunction
with any person.
Incidents of ownership in a policy include:
● The right of the insured or estate to its economic
benefits;
● The power to change the beneficiary;

Schedule D—Page 16

● The power to surrender or cancel the policy;
● The power to assign the policy or to revoke an
assignment;
● The power to pledge the policy for a loan;
● The power to obtain from the insurer a loan
against the surrender value of the policy; and
● A reversionary interest if the value of the
reversionary interest was more than 5% of the
value of the policy immediately before the
decedent died. (An interest in an insurance policy
is considered a reversionary interest if, for
example, the proceeds become payable to the
insured’s estate or payable as the insured directs if
the beneficiary dies before the insured.)
Life insurance not includible in the gross estate
under section 2042 may be includible under some
other section of the Code. For example, a life
insurance policy could be transferred by the decedent
in such a way that it would be includible in the gross
estate under section 2036, 2037, or 2038. See the
instructions to Schedule G for a description of these
sections.

Completing the Schedule
You must list every policy of insurance on the life of
the decedent, whether or not it is included in the gross
estate.
Under “Description,” list:
● The name of the insurance company, and
● The number of the policy.
For every policy of life insurance listed on the
schedule, you must request a statement on Form 712,
Life Insurance Statement, from the company that
issued the policy. Attach the Form 712 to the back of
Schedule D.
If the policy proceeds are paid in one sum, enter the
net proceeds received (from Form 712, line 24) in the
value (and alternate value) columns of Schedule D. If
the policy proceeds are not paid in one sum, enter the
value of the proceeds as of the date of the decedent’s
death (from Form 712, line 25).
If part or all of the policy proceeds are not included
in the gross estate, you must explain why they were
not included.