Section 9-204. INSURANCE AND ANNUITIES

 

204.1Transfers of the proceeds of insurance on the life of the decedent and of annuity contract benefits are taxable under Article 1 of the Act in the following circumstances:

 

(a) If the proceeds are payable, directly or indirectly, to the estate;

 

(b) If the proceeds are taken out to provide for the payment of taxes (including estate and inheritance taxes) or other charges against the estate, or to be used for the benefit of the estate of the insured; or

 

(c) If the proceeds are made payable to a named beneficiary who has pre-deceased the insured.

 

204.2Transfers of the annuity contract benefits are taxable under Article 1 of the Act if the annuity policies or contracts are ones upon which the decedent received benefits during his or her lifetime and upon which the full value did not terminate with his or her death.

 

204.3Transfers of the proceeds of policies written by the United States government to which any of the circumstances set forth in this section applies are taxable under Article 1 of the Act.

 

source

Commissioners' Order 299-637/12, effective June 14, 1944, 16 DCRR § 404.