Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Wednesday, July 11, 2018

How Tax Reform Could Fuel Life Settlement Industry

Tax actThe life settlement industry may have already been growing at a steady pace, but the Trump Administration's passage of the Tax Cuts and Jobs Act gave it much appreciated momentum. Taxpayers could continue to shun life insurance policies due to the increase in the gift and estate tax exemption amount and opt to purchase life settlements instead.

But is the improved tax situation enough? "While the investing environment surrounding the life insurance market is looking ideal, it’s not yet clear if a better tax situation alone is sufficient to encourage long term growth in the life settlement industry." It is no longer a necessity for life insurance programs to be grouped together with a client's entire estate plans.

No market is entirely level for too long, and the truth of the matter is that Americans aren’t investing nearly enough in their retirement. A change of government in the near future could see new tax legislation introduced, altering or even removing the current master overhaul from President Trump.

See Gary Eastwood, How Tax Reform Could Fuel Life Settlement Industry, Accounting Web, June 13, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.


Current Affairs, Estate Planning - Generally, Estate Tax, Gift Tax, New Legislation, Wills | Permalink


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