It includes the power to change beneficiaries, to revoke an assignment, to obtain a loan against the surrender value, to pledge the policy for a loan, or to surrender or cancel the policy. If a decedent made a completed gift of a life insurance policy on his or her life, and all incidents of ownership, within three years of death, the proceeds of the life insurance policy are included in the gross estate of the decedent. If the transfer were made more than three years prior to death, the proceeds of the life insurance policy are not included in the decedent's gross estate. The proceeds of insurance owned by a partnership on the life of a partner are not included in the insured partner's gross estate if the proceeds are payable to or for the benefit of the partnership. Joint interests .
Joint interests involve property owned by more than one person.
At the time of death of one owner, the other owner receives full ownership rights to the property. The gross estate of the decedent includes the full value of joint interests. If the joint tenants are spouses the ownership is considered qualified joint interests. The gross estate of the decedent only includes one-half of the value of qualified joint interests. Gift taxes .