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A taxpayer inquired whether life insurance proceeds, for which premiums were paid using community property funds, should be split between the estate of her father (the last insured) and that of her mother (who predeceased him). The Directorate General of Taxes (DGT) ruled that, as the father was the sole policyholder and owner of the contract, the proceeds must accrue entirely to the father's estate.
The tax team reviews your specific situation.
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