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No longer able to afford the premiums, Kelly decides to transfer her exempt personally owned Permanent Life Insurance plan to her sister. At the time
No longer able to afford the premiums, Kelly decides to transfer her exempt personally owned Permanent Life Insurance plan to her sister. At the time of transfer the Insurance Plan has a death benefit of $250,000, CSV of $50,000, and an adjusted cost basis of $30,000. Therefore the Fair market value for the Plan would be $50,000. At time of transfer what is going to be the taxable impact to Kelly ?
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
8th edition
134730364, 978-0134730363
