Transfer-for-Value & Reportable Policy Sale Concerns in Buy-Sell Arrangements

Situation: Using life insurance as a funding vehicle for a buy-sell arrangement gives rise to several potential tax traps, especially in out-of-the-ordinary owner/beneficiary structures. It seems that more than almost any other area, buy-sell agreement funding, modification, and termination gives rise to potential transfer-for-value and reportable policy sale traps. This Counselor’s Corner discusses some of […]