Various rights that may be exercised under the policy contract by the policyowner. Some of the incidents of ownership may include rights: (1) to cash-in the policy, (2) to receive a loan on the cash value of the policy, and (3) to change the beneficiary designation.
The rights to exercise any of the privileges or rights in a policy, for example, to change beneficiaries, withdraw cash values, make loans on the policy, assign it, etc.
In life insurance, the right to exercise any of the privileges of policy ownership, including the right to change beneficiaries, withdraw cash values, take policy loans, make assignment, etc.) Incidents of ownership can be major estate planning factors for policyowners who wish to transfer policy ownership from themselves to another person or a trust, thereby removing the policies from their estates. If any incidents of ownership remain with the original owner, policy proceeds may be included in the person's estate at death.
All or any management control over a trust or an insurance policy. In relation to an insurance policy, incidents of ownership include the right to change the beneficiaries, borrow cash value, and change the ownership, among other rights.
In insurance, if a person retains the right to designate a beneficiary, transfer ownership of an insurance policy (assign), choose how dividends or policy proceeds will be paid out, borrow money from the accumulated cash value of the policy, or perform any other functions that are rights of ownership, then that person has incidents of ownership in the policy.
Rights applying to ownership interest in an insurance policy. These include the right to change a beneficiary, to borrow on a policy, to change premium modes, and so on.
For insurance purposes, the right to exercise any of the privileges in the insurance policy (change beneficiary, withdraw cash values, make loans on the policy, make assignment, etc.).
Various rights that may be exercised under the policy contract by the policy owner. Some of the incidents of ownership would be: (1) the right to cash in the policy, (2) to receive a loan on the cash value of the policy, and (3) to change the beneficiary.
Any element of control or ownership rights in an insurance policy. To remove insurance from a gross estate for estate-tax purposes, you must give up all incidents of ownership and live at least three years.
Includes a variety of rights and powers that an insured decedent may have held over a life insurance policy; the possession of one or more of these incidents of ownership within three years of death will bring the policy proceeds into the insured's gross estate.
Any control over property. If you give away property but keep an incident of ownership--for example, you give away an apartment building but retain the right to receive rent--then legally, no gift has been made. This distinction can be important if you're making large gifts to reduce your eventual estate tax.
The rights to exercise any of the privileges in the policy: to change the beneficiary, withdraw cash values, make loans on the policy, assign it, etc.
A policyowner's rights under a life insurance policy, including the right to change the beneficiary and the right to surrender the policy for the cash value.