Sale of life insurance to welfare benefit plans and VEBAs
Article Abstract:
Multiple employer welfare benefit plans, or Voluntary Employees' Beneficiary Associations, can provide risk tolerant closely held business owners with income tax deductible permanent life insurance. The risk is that the deduction could be disallowed. Careful planning is required and lawyers' opinions should be solicited for the protection of taxpayers, insurance agents and companies, and any other taxpayer advisers. An extensive legal analysis is provided.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Credit shelter trusts as potential purchasers of life insurance
Article Abstract:
Irrevocable inter vivos life insurance trusts can leverage transfer tax exemptions. Life insurance is a common funding vehicle in this context, but the credit shelter trust also can be used to accomplish the same task. Credit shelter trusts can show significant advantages over irrevocable trusts, partly since there is no gift tax issue associated with release of the limited power of appointment.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Sale of life insurance to welfare benefit plans and VEBAs, part 2
Article Abstract:
There is some value in permitting the deductibility of contributions to a multiple employer benefit plan that pays only in case of death. The IRS has not accepted this argument. The IRS has issued a warning about these plans, and claims for such deductions have triggered audits. In Booth v. Commissioner, the US Supreme Court has supported the IRS position.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Yes: lawyers should have the benefit of the bargain. No: clients should get the benefit of full disclosure. Meet needs with nonlawyers: it is time to accept lay practitioners - and regulate them
- Abstracts: Death benefits - no longer just for beneficiaries. Crash value life insurance. A picture is worth...
- Abstracts: Single VEBA may consist of several separate welfare benefit funds maintained pursuant to collective bargaining agreements
- Abstracts: What powers over a credit shelter trust can the spouse possess? Transferring a general partnership interest to a living trust
- Abstracts: School supplies for law firms; a look at where some law firms find their newest associates. Where associates are schooled: a look at where some law firms find their new young lawyers