Taxation 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.
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