First-to-die life insurance: an analysis of ownership issues
Article Abstract:
First-to-die life insurance benefits both individual and corporate taxpayers, but ownership issues may result in adverse tax consequences and so should be carefully considered. For the individual or family taxpayer, the insurance should be set up between two parties with each party being the beneficiary of the other's death benefit because three distinct parties can result in tax liability. Corporations with two owners should use a trustee-owned cross-purchase agreement but multiple owners are better served by a corporation-owned redemption agreement despite alternative minimum tax.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1992
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Toward a strong federal pension insurance corporation
Article Abstract:
The Pension Benefit Guaranty Corp (PBGC) will face financial difficulties in future years because the present premium income does not exceed the promised future benefits and costs of further terminated plans. This problem is a result of cash accounting that disguises future costs and the large number of highly underfunded plans that are insured by PBGC. Reforms that could strengthen PBGC's financial position include a change from cash to accrual accounting so that losses are expected and higher funding requirements for plans.
Publication Name: Journal of the American Society of CLU & ChFC
Subject: Law
ISSN: 1052-2875
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
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