When an insured person or policy owner dies and an estate tax return is filed (or when a life insurance policy is transferred as a gift), Uncle Sam wants to know about it by way of the Internal Revenue Service (IRS) Federal Form 712 Life Insurance Statement.
The IRS Federal Form 712 reports the value of a life insurance policy's proceeds after the insured dies for estate tax purposes. Because it's typically the executor who manages the financial affairs of the deceased, it's 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 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, the amount of the proceeds, as well as personal information on the insured such as date of birth/death, Social Security number, and sex. It also asks if the policy was transferred three years prior to the death of the insured.
If you have a life insurance policy claim and need to obtain a copy of the IRS Federal Form 712, you can download a copy on the IRS website. If your policy is with Protective, you can call our customer service number at 1-800-424-1592 and state that there has been a death of one of the parties involved in the policy and that you require an IRS Federal Form 712.
To learn more about life insurance claims as well as estate planning, visit the Protective Learning Center.