IRS Form 712 Life Insurance Statement

Who Must File IRS Form 712?

Tax Form 712 is requested by the decedent's representative or executor - they are supposed to reach out to the insurance company the deceased individual worked with and ask them for a statement.

Once the information is received in full, the executor or representative attaches a copy of the instrument to the main document required to settle the estate of the decedent - it may be IRS Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, IRS Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, or IRS Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

Form 712 Instructions

IRS Form 712 instructions are as follows:

1. Write down the full name, social security number, and date of death of the person in question . Note that you may skip the second detail if your insurance company does not have this information at its disposal.

2. Indicate the name and address of the insurance provider. Specify the type of policy the decedent purchased and the number of that policy . It is possible the policy owner is a different individual - you have to identify them in writing and add the date the policy was issued. In case the policy was transferred to another person, name the assignor, record the day the assignment took place, and enclose a copy of the document.

3. Clarify the policy value on the day the assignment occurred, write down the amount of premium, and list the names of beneficiaries . Provide a full breakdown of the insurance policy payment - from the amount of the policy to post-mortem dividends. If you included additional conditions to the policy, they must be indicated in the form as well as the amount of installments and premium upon the purchase of benefits.

4. Specify the basis you used during the evaluation of installment benefits, check the box to confirm the policy was transferred during the last three years of the decedent's life, and enter the date the transfer or assignment happened.

5. In case the insured individual was benefiting from annuity agreements or was involved in ownership incidents on other insurance policies, answer yes . List the names of insurers the decedent had policies with if you have this information available. Certify the form by signing the papers, adding your title, and recording the day the certification took place.

6. Complete the second section of the form if the policy was transferred to another person or the deceased individual had a life insurance policy on behalf of someone else . Provide the full name and social security number of the decedent or donor, specify when the gift was formalized, and add the date of death of the person who held a policy in the first place.

7. List the details of the insured individual - their full name, gender, and date of birth. Identify the insurance provider by their name and address, provide the details of the policy, and describe the specifics of the assignment if necessary. In some instances, the designation is rather complicated - attach more sheets to the statement if you need to.

8. Fill out the fields of the form that apply in the situation - either the policy was paid or not paid . You will have to state the value of the policy and explain how the adjustments affected the value. Once you are done with the calculations, sign the document, write down your title, and enter the date of certification.