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Taxation Of Policy Sales To Life Settlement Companies- BSMG's Russell E. Towers

Posted by Russell E. Towers JD, CLU, ChFC on 23 Sep 2016
Russell E. Towers JD, CLU, ChFC

2016-09-21_17_04_31-Broker_World_Magazine.pngTaxation Of Policy Sales To Life Settlement Companies

When a life insurance policy is sold to a life settlement company, certain tax rules must be followed by the policy owner/seller.  This taxation is governed by Rev. Rul. 2009-13 where the IRS contrasted the taxation of a policy which has been surrendered with the taxation of a policy which has been sold to a settlement company.

Read More: Why the Life Settlement Marketplace Should Be On Your Radar

In this article some of the topics Russ covers are:

  • Surrender of a Policy by a Policy Owner
  • Sale of a Policy to a Life Settlement Company
  • Sale of a Permanent Policy in a “Gain” Position
  • Sale of a Permanent Policy in a “Loss” Position
  • Sale of a Term Policy

Download the Full Article Here

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Russell E. Towers can be reached at Brokers’ Service Marketing Group,
500 South Main Street, Providence, 
RI 02903
800-343- 
7772, extension 141.
russ@bsmg.netBrokerWorldLogo
View His Bio

Topics: Advanced Markets, Advanced Sales