Taxation
Two Sure Things-Death and Taxes Q and A
Are taxes paid on policy distributions? Taxes are only paid on distributions (dividends, withdrawals, and partial surrenders) that exceed the amount of the policy owner’s investment in the policy. Are taxes paid on policy loans? No, because loans are not considered to be distributions from the policy, unless the policy lapses. What are the tax…
Read MoreFederal Tax and Long Term Care Insurance
Long Term Care Insurance (LTCi) policies that are federally qualified are subject to various tax treatments depending upon who is paying for the policy, who is receiving the benefit, and the age of the policy benefactor. The tax advantages described in this article are current with 2018 tax regulations, though readers should seek the advice…
Read More
