1. Businesses writing off the premium costs on their taxes. Can be prevalent with key person policies.
2. Unholy Trinity - Owner, Insured, and Beneficiary are all different. It creates a gift from the owner to the insured
3. Tax Code Section 101J - For business policies after 2006 a disclosure form should be completed.
4. Estate Taxes - If policies are individually owned and not trust owned then the benefit is subject to estate taxes beyond the exemption level.
5. Policies held in a non-qualified retirement plan.
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