Should the transfer of ownership of a whole life insurance policy be reported on the former owner's tax filing and, if so, how?

[pk]

Is this as part of estate settlement of the decedent ? or what?  Note generally there may be a requirement to report this transaction on form 712 and I suppose this would be part of TurboTax Business , not individual filings

[rcalvo12]

No this is not part of estate settlement of the decedent. The owner of the life insurance policy (mother) is living and decided to transfer the ownership of the policy to her son and daughter making them both the owner and beneficiary of the policy. The insurance company has advised that this transaction is not a taxable event but must be reported to the IRS by the mother so the question is how this type of transaction reported?  

[pk]

This is then a gift -- it is not a taxable event  -- the donor needs to report this on form 709. The donor may have to download the form, fill it out  sign/date and mail this to the IRS