§2206 — Title 26 Internal Revenue Code | U.S. Code

Summary

Unless the will says otherwise, when life insurance on the decedent is included in the estate and estate tax is paid, the executor can require a beneficiary (not the executor) who got those insurance proceeds to pay the share of the estate tax that matches how much those proceeds are of the taxable estate. If more than one beneficiary got the proceeds, they split the tax share between them the same way. If the surviving spouse got proceeds that qualified for the marital deduction under section 2056, the executor can only collect tax on the amount that is more than the total marital deduction allowed.

Title 26, §2206

Internal Revenue Code — Source: USLM XML via OLRC

Unless the decedent directs otherwise in his will, if any part of the gross estate on which tax has been paid consists of proceeds of policies of insurance on the life of the decedent receivable by a beneficiary other than the executor, the executor shall be entitled to recover from such beneficiary such portion of the total tax paid as the proceeds of such policies bear to the taxable estate. If there is more than one such beneficiary, the executor shall be entitled to recover from such beneficiaries in the same ratio. In the case of such proceeds receivable by the surviving spouse of the decedent for which a deduction is allowed under section 2056 (relating to marital deduction), this section shall not apply to such proceeds except as to the amount thereof in excess of the aggregate amount of the marital deductions allowed under such section.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1976—Pub. L. 94–455 substituted “the taxable estate” for “the sum of the taxable estate and the amount of the exemption allowed in computing the taxable estate, determined under section 2051” after “policies bear to”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1976 AmendmentAmendment by Pub. L. 94–455 applicable to estates of decedents dying after Dec. 31, 1976, see section 2001(d)(1) of Pub. L. 94–455, set out as a note under section 2001 of this title.

§2206 Liability of Life Insurance Beneficiaries