AALU: Impact of Final Regulations on Reportable Policy Sales in the COLI/BOLI Marketplace
The Tax Cuts and Jobs Act of 2017 (the “TCJA”) modified the prior-law exemptions of the Transfer for Value Rules (“TFV Rules”) to include new Reportable Policy Sale (“RPS”) requirements that apply to all transfers for valuable consideration. This rulemaking has important implications for the company-owned life insurance (“COLI”) and bank-owned life insurance (“BOLI”) marketplaces and will affect the taxation of death benefits on some contracts. The Treasury Department recently released regulations offering several ways to preserve the pre-TCJA treatment of COLI and BOLI contracts.
To learn more about the impact of final regulations, click here. And to help you determine whether existing COLI/BOLI contracts qualify for the exceptions available under the rule, contact Banc Consulting Partners at firstname.lastname@example.org.
This article is brought to you by The Association for Advanced Life Underwriting.