Section 2035 three-year lookback
Certified Financial Planner glossary · Certified Financial Planner
Definition
Pulls back gift tax paid out-of-pocket and life insurance on the decedent's own life transferred within three years. Does not pull back ordinary stock or real-estate gifts.
Section 2035 three-year lookback in plain English
Someone gifts a life insurance policy on their own life two years before death and assumes the proceeds are cleanly out of the estate. Section 2035's three-year lookback pulls back gift tax paid out of pocket and life insurance on the decedent's own life transferred within three years; it does not pull back ordinary stock or real-estate gifts. The polarity miss is treating a stock gift like a policy gift. Ordinary securities generally stay out; own-life policy transfers within three years do not.
Related Certified Financial Planner terms
Certified Financial Planner practice questions · Certified Financial Planner flashcards · Certified Financial Planner study guide