New TAM will likely lead to changes in tax results of collateral assignment split-dollar
Article Abstract:
IRS technical advice memorandum (TAM) 9604001 implies that an employee's gross income and taxes may increase when a collateral assignment equity split-dollar life insurance policy's total value exceeds the employer's annual premium. Specifically, the TAM rules gross income increases by the cash surrender value increase exceeding amounts to be returned upon termination. Practitioners should make clients aware of this downside to split-dollar arrangements, but avoid recommending hasty changes, especially since TAMs are not legally binding.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1996
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Practical guidance for clients who are considering replacing a life insurance policy
Article Abstract:
Clients considering replacing an existing life insurance policy with a new policy may want to review the concerns raised by a brochure released by Metropolitan Life and sent to policyholders. The brochure notes that additional hidden costs may be incurred by switching to a new policy. The insured should be aware of what is being done with any cash value and should investigate whether benefits and premiums will remain the same.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1995
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Growing sales of variable life erode market share of whole life and universal life
Article Abstract:
Variable life insurance sales are beginning to lessen the numbers of whole life and universal life policies sold. In 1990, variable policies represented 5-6% of the market; by 1997, this figure grew to 23%. The value of variable life policies is linked to that of an investment portfolio chosen by the policyholder, while traditional policies derive their value from premium dollars invested by the insurance company.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1998
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