TITLE

Avoiding a New Tax Trap in Business Owned Life Insurance

AUTHOR(S)
Cordell, David M.; Langdon, Thomas P.
PUB. DATE
January 2010
SOURCE
Journal of Financial Planning;Jan2010, Vol. 23 Issue 1, p34
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article discusses topic related to the two major exceptions to income tax free life insurance death benefits in the U.S. It presents the two exceptions including the transfer for value rule and business owned life insurance (BOLI). It explains that the life insurance is one among the few assets that receives preferential treatment for tax purposes. The article also mentions the two death benefit taxation of employer owned policies that can be avoided including notice and consent requirement are met and if a safe harbor exemption exists.
ACCESSION #
47844617

 

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