Taxation of Life Insurance Proceeds (Completed)
Date: Friday, August 16, 2024
Instructor: Klaralee R. Charlton
| Begin Time: |
9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time |
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC
2 hours General Principles of Financial Planning for CFP |
|
NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Life insurance proceeds are traditionally thought of as exempt from tax. However, most taxpayers and some practitioners are surprised to learn life insurance is taxable for estate tax and may also be taxable for income tax. Certain lifetime transfers of policies can transform an income tax-exempt asset into a taxable one—sometimes unintentionally. In this course we will review the income and estate tax rules relating to life insurance proceeds and analyze the transactions that transform tax-exempt proceeds into taxable ones. The presentation will describe the best transfer methods for taxpayers desiring to transfer policies while maintaining the tax-exempt status of the policy proceeds and discuss model ownership methods to minimize estate tax.
Who Should Attend
Attorneys, CPAs, and Enrolled Agents.
Topics Covered
- Analysis of the estate and income tax consequences related to life insurance proceeds
- Identification of transfers which transform life insurance proceeds from tax-exempt to taxable for income tax purposes
- Calculation of the taxable income for proceeds from policies subject to income tax
- Review of methods for transferring policies while retaining the tax-exempt quality of the policy proceeds
Learning Objectives
- Describe the income and estate taxation of life insurance proceeds
- Identify the methods for transferring life insurance policies while retaining the tax-exempt character of the policy proceeds
- Identify opportunities to minimize the taxation of life insurance proceeds
- Recognize and analyze the consequences of transferring life insurance policies to related and unrelated parties
- Identify how to recommend ideal transfer methods for life insurance policies to minimize income taxation
Level
Basic
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
