What does Federal Estate Tax mean? Read on to discover the definition & meaning of the term Federal Estate Tax - to help you better understand the language used in insurance policies.
Federal Estate Tax
An excise tax currently levied upon the transfer of property or interests in property at death. Life insurance proceeds are taxable if payable to the decedent's estate, or if payable to named beneficiaries and the insured possessed at death any incidents of ownership in the policy or policies. The value of life insurance policies owned by the decedent on the lives of others is also taxable.
We hope the you have a better understanding of the meaning of Federal Estate Tax.