Monday, November 28, 2016
Jon B. Mendelsohn recently published an Article entitled, Rethinking Life Insurance Valuation for Seniors, Trusts & Estates (Nov. 2016). Provided below is a summary of the Article:
Life insurance has long been considered a hard to value asset. Practitioners and planners have dealt with a variety of definitions of fair market value (FMV), depending on the particular application that’s being addressed. Historically, standard valuation practices come with their own set of challenges. Similar to other asset classes, this topic is evolving, and there are current valuation methodologies that provide an independent market-based value for life insurance that accurately conforms to the Internal Revenue Service definition of FMV. This level of precision can influence planning scenarios and open up new options when dealing with complicated life insurance decisions involving senior clients.