|
|
|
|
Incidents of Ownership
Husband and Wife established a trust that held two life insurance policies on their joint lives. The policies were then transferred from the trust to a limited partnership and the trust received shares of the limited partnership. The partnership was designated as the beneficiary and paid the premiums. Husband and Wife also made cash contributions to the partnership in return for partnership interests. However, the partnership agreement precluded limited partners from controlling the management of the partnership. The IRS ruled that the couple did not possess any incidents of ownership in the two life insurance policies. As a result, the proceeds of the policies were not includible in either spouse's gross estate for federal estate tax purposes.
Source: Letter Ruling 200111038
|
About Us
|
News
|
Alerts
|
Articles
|
Caveat Emptor
|
SNSFE News
|
Research
|
Calendar
|
Contact
Register
|
Free Opinion
Sponsored by James J. Eccleston, an attorney representing stockbrokers, financial planners and
investors nationwide in arbitration, litigation and regulatory matters, and a shareholder with the law firm
Shaheen, Novoselsky, Staat, Filipowski & Eccleston
P.C.(www.snsfe-law.com). This Web site contains material
of general interest. It is neither intended to, nor constitutes, either legal advice or investment advice.
Always consult an attorney and/or investment advisor when building and protecting your wealth.
All content Copyright © 2005-2007 FinancialCounsel.com, Inc. except where noted. All rights reserved.
20 North Wacker Drive, Suite 2900, Chicago, Illinois 60606
Telephone: 312-621-4400 | Fax: 312-621-0268
|
|
|
|
|
