IRS Issues “Stranger Owned Life Insurance” Rules

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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