COLI/BOLI – New Transfer for Value Regulation

Topics: Transfer for value

March 22, 2019 WRN 19.03.22 This morning, Treasury and the IRS released a proposed regulation related to reportable policy sales of life insurance contracts that will address the transfer for value issue. Our initial analysis is that the proposed rule looks good and will largely address the concerns outlined in our comment letter June 2018....

Impact of Final Treasury Department Section 199A Regulations on Availability of Passthrough Deduction for Life Insurance Professionals

Topics: 199A, Regulation, Tax reform, Treasury Department

WRNewswire: The 199A Deduction Series Impact of Final Treasury Department Section 199A Regulations on Availability of Passthrough Deduction for Life Insurance Professionals Favorable results for commission-based life insurance sales This WRNewswire was created exclusively for AALU members by Ken Kies, Managing Director, Federal Policy Group and AALU outside tax counsel. January 30, 2019 …

Generational Split Dollar – IRS Argues Inside Build Up is Retained “Income” of Decedent Triggering Estate Inclusion of Cash Value

Topics: Split-dollar

There has been significant Tax Court activity this year related to generational split dollar arrangements (GSDs), which involve split dollar arrangements between a parent and the parent’s irrevocable trust to fund the trust’s purchase of a life insurance policy typically insuring a child. At the GSD’s termination (death of the insured child or earlier agreement…

AALU Submits Comments on SEC Standard of Care Proposal

Topics: SEC

On April 18th, the Securities and Exchange Commission (SEC) issued a standard of care proposal for broker-dealers and investment advisors that aims to reform the way that financial professionals serve retail investors for the sale of variable life and annuity products. The comment period ended August 7th, and AALU provided comments along with many of…

Treasury Releases Pass-through Deduction Regs

Topics: Passthrough taxation, Tax treatment

Treasury released proposed regulations on the Section 199A deduction for pass-through business owners created in the Tax Cuts and Jobs Act. AALU is currently analyzing the 184 pages of proposed regulations. We will provide follow-up analysis and information. H.R. 1 created a 20% deduction on qualified business income for owners of “pass-through businesses,” where income…

New York State Releases Final Best Interest Regulation

Topics: Advisor/Producer Standard of Conduct, Best interest, Regulation

Yesterday afternoon, the New York Department of Financial Services issued a final best interest rule. As expected, the final rule applies to both life insurance and annuity products, including in-force life insurance policies. While there were positive changes to the rule—for example, it limits the scope on in-force policies to transactions generating new sales compensation—it…

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