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Full-Text Articles in Law
Tax Consequences Of Assigning Life Insurance - Time For Another Look, Douglas A. Kahn, Lawrence W. Waggoner
Tax Consequences Of Assigning Life Insurance - Time For Another Look, Douglas A. Kahn, Lawrence W. Waggoner
Articles
The Taxpayer Relief Act of 1997 furnishes the courts and the Internal Revenue Service an opportunity to close certain loopholes in the federal tax consequences of assigning life insurance. About twenty years ago, we published an article arguing that the tax consequences of assigning life insurance affords taxpayers unwarranted opportunities for tax avoidance. Since then, developments in the case law and Internal Revenue Service rulings have broadened the loopholes. In the update of our article, we show how the new tax law supports our original position.
Regulating Viatical Settlements: Is The Invisible Hand Picking The Pockets Of The Terminally Ill?, Russell J. Herron
Regulating Viatical Settlements: Is The Invisible Hand Picking The Pockets Of The Terminally Ill?, Russell J. Herron
University of Michigan Journal of Law Reform
The newly emerging viatical settlement industry has attracted considerable attention from both insurance regulators and advocates for the terminally ill. In a viatical settlement, a terminally ill person names a viatical settlement company as beneficiary under his life insurance policy in exchange for an immediate lump-sum cash payment of less than face value of the policy. To date, viatical settlement payments to people with AIDS (PWAs) have been disturbingly low as a percentage of the face value of PWA policies. This Note examines the few enacted viatical settlement regulations and the National Association of Insurance Commissioners' model regulations as they …
Federal Taxation Of The Assignment Of Life Insurance, Douglas A. Kahn, Lawrence W. Waggoner
Federal Taxation Of The Assignment Of Life Insurance, Douglas A. Kahn, Lawrence W. Waggoner
Articles
The most litigated estate tax issue concerning life insurance is whether the proceeds should be included in the insured's gross estate. This question usually is governed by section 2042 of the Internal Revenue Code of 1954, the estate tax provision directed specifically at life insurance. While the Tax Reform Act of 1976 wrought enormous changes in many areas of estate taxation, Congress did not change section 2042. Thus the several unresolved questions concerning the interpretation of that section remain unsettled. But the question of the includability of life insurance proceeds in the gross estate of the insured is not always …
Taxation-Federal Gift Tax-Life Insurance Policies, John W. Riehm S.Ed.
Taxation-Federal Gift Tax-Life Insurance Policies, John W. Riehm S.Ed.
Michigan Law Review
On December 19, 1930 the petitioner created two trusts, placing in the first five $100,000 life insurance policies on the life of her husband, and in the second, securities, the income from which was to pay premiums on the policies, excess if any to be paid to the petitioner; after the death of her husband the whole of the income from the securities was to be paid to her for life. On death of the husband the proceeds of the life insurance policies were to be used to provide life estates for four named beneficiaries followed by remainders over; and …
The Assignment Of A Life Insurance Policy, Grover C. Grismore
The Assignment Of A Life Insurance Policy, Grover C. Grismore
Michigan Law Review
There is a great deal of uncertainty and confusion in the decided cases in regard to the effect to be given to the assignment of a life insurance policy. This is unfortunate, since to a large extent life insurance has come to be regarded as an investment medium, and as an asset which can be hypothecated by the insured in times of financial emergency.
Insurance - Insurable Interest In Life - Right Of Insured To Designate Beneficiary Without Insurable Interest, William D. Sutton
Insurance - Insurable Interest In Life - Right Of Insured To Designate Beneficiary Without Insurable Interest, William D. Sutton
Michigan Law Review
The Metropolitan Life Insurance Company issued a group insurance policy in the sum of $500 upon the life of appellant's husband. The husband paid all the premiums and designated a niece, appellee, the beneficiary therein. Several years prior to the issuance of the policy appellant had ceased to live with the insured, although a divorce had never been obtained. Appellant contested the recovery of the proceeds by appellee on the ground that said niece had no insurable interest in the life of insured. Held, judgment of the trial court awarding proceeds to appellee affirmed, on the ground that appellee …
Damages - Insurance Contract - Right To Recover Present Worth Of Future Payments On Life Policy, James W. Mehaffy
Damages - Insurance Contract - Right To Recover Present Worth Of Future Payments On Life Policy, James W. Mehaffy
Michigan Law Review
An insurance policy provided for the payment of 3 1/2 per cent interest on the amount due beneficiaries until they attained the age of 21, then payment of the entire amount. The policy also contained a double indemnity clause. The insured died under circumstances leaving it doubtful whether the double amount should be paid. Upon application by the guardian of the minor beneficiaries for payment of the double amount in the manner stipulated, the defendant company refused payment of more than the face value of the policy on the ground that the proofs of accidental death were not sufficient. Plaintiff …
Domestic Relations - Infants - Right Of Insurer To Deduct For Protection Furnished On Infants Disaffirmance Of Policy
Michigan Law Review
An infant sued by his next friend to disaffirm a contract of insurance on his own life, in which his mother and sister were named as beneficiaries, and to recover premiums paid. The insurance company claimed the right to deduct for the protection furnished insured during the continuance of the policy, but there was nothing in the record to show what this protection had cost the company. Held, the Chief Justice dissenting, the insured was entitled to recover the full amount paid. Mutual Life Ins. Co. of New York v. Schiavone, (App. D. C. 1934) 71 F. (2d) …
Insurance-Misrepresentations-Insertion Of False Answers By Medical Examiner
Insurance-Misrepresentations-Insertion Of False Answers By Medical Examiner
Michigan Law Review
If an applicant for life insurance, in answering the many questions put to him by the company's medical representative, tells the truth, but the examiner, in recording the answers, distorts them without the knowledge of the insured, may the beneficiary or the personal representative of the insured show this distortion by parol, and collect on the policy in spite of the presence of false written answers in the application? The New York court of appeals, in the very recent case, Minsker v. John Hancock Mutual Life Insurance Co., 254 N. Y. 333, 173 N.E. 4, answers this question in …