Important Facts

Understanding the IRS Federal Form 712

Filing tax forms with the federal government can be tricky. To ensure all taxes are in order when a life insurance policy is paid out, it is essential to understand IRS Federal Form 712. In this article, we'll cover what exactly form 712 is, and the who, where and how of filing it. 

Filing Form 712

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 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 Life, 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.

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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

Understanding Form 712

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), the IRS will require that a Federal Form 712 Life Insurance Statement be filed to determine estate taxes. This article looks at the basics of a Federal Form 712 and why it is required in certain circumstances. If you're unsure if you need to file a Federal Form 712, consult with an estate planning attorney or qualified tax planner. For more information, visit the Protective Life Learning Center.

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