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  • Pondering your policy – Watch out for a little-known tax trap – the transfer-for-value rule

    January / February 2008
    Newsletter: Estate Planner

    Price: $225.00, Subscriber Price: $157.50

    Word count: 1141

    Abstract: Life insurance is an essential building block in an estate plan. But it’s important to handle life insurance policies carefully. Beneficiaries typically are exempt from income taxes on death benefit proceeds. But if a policy is transferred for valuable consideration, the risk of triggering income taxes arises because of a little-known, yet lethal, provision of the Internal Revenue Code called the transfer-for-value rule. This article explains the transfer-for-value rule.

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