The Internal Revenue Service (“IRS”) issued two Revenue Rulings on May 1, 2009, addressing certain tax aspects of sales and surrenders of life insurance policies: Rev. Rul. 2009-13 and Rev. Rul. 2009-14. These rulings resolve some longstanding questions regarding sales of life insurance policies and in many respects are consistent with life settlement industry expectations.
www.irs.gov/pub/irs-drop/rr-09-13.pdf
www.irs.gov/pub/irs-drop/rr-09-14.pdf
By Daniel W. Gerber and Kimberly E. Whistler
https://www.goldbergsegalla.com/attorneys/Gerber.html
https://www.goldbergsegalla.com/attorneys/Whistler.html