In a recent tax court decision, an individual was as determined for tax purposes to be the owner of assets in segregated asset accounts held for the benefit of private placement variable life insurance policies.
Insurance Planning Risk Management
This exhibit accompanies the Personal Financial Planning column in the June 2014 issue of The Tax Adviser.
The prolonged low-interest-rate environment can have a dramatic effect on universal life insurance policies.
“Pension rescue” is a sales concept used to help sell life insurance. The problem with pension rescue is that it is based on a valuation of the life insurance policy that may not hold up to IRS scrutiny.
Editor: Michael David Schulman, CPA/PFS One of the most attractive aspects of life insurance as an estate and financial planning tool is the tax treatment of the death proceeds. Generally, the proceeds of a life insurance policy received by a beneficiary are entirely free from income tax (Sec. 101(a)(1)). However,
Long-term care is defined in the Code as “necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance or personal care services” for a chronically ill individual.