AALU Report 13-27

What is the proper valuation of Life Insurance policies distributed from non-qualified trusts?

Life Insurance valuations continue to be an elusive concept.

The conservative approach to the valuation of a life insurance contract is to follow the safe harbors of Rev. Proc. 2005-25.

However, The Ninth Circuit’s affirmation of a Tax Court decision indicates that there is current judicial support for an interpretation of applicable statutory and regulatory language that would allow the life insurance contract to be valued taking into account potential surrender charges.

Learn more about the impact of this decision AALU Washington Report 13-27, published July 18, 2013.