Tuesday, January 30, 2018
The Tax Cuts and Jobs Act (TCJA) has ushered in direct changes involving the tax treatment of insurance and substantial indirect changes to life insurance planning. These alterations in prior law offer some new and intriguing planning opportunities relating to life insurance. A direct change of note is TCJAs imposition of reporting requirements in instances where an existing life insurance policy is purchased in a reportable policy sale. The increase of the estate tax exemption limits indirectly affects planning as far fewer clients will need to purchase life insurance policies as a means to pay the federal estate tax.
See Barry D. Flagg, Thomas Tietz, & Martin M. Shenkman, Life Insurance Planning After Tax Reform, Wealth Management.com, January 18, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.