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	<title>New answer on: Can You Transfer Ownership Of A Life Insurance Policy?</title>

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		<title>By: Steven Gates</title>

		<link>https://insurancelibrary.com/life-insurance/can-you-transfer-ownership-of-a-life-insurance-policy</link>

		<dc:creator>Steven Gates</dc:creator>

		<pubDate>Fri, 30 Aug 2013 14:29:04 +0000</pubDate>

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		<description><![CDATA[As with any asset, ownership of a life insurance policy can be transferred to a new owner either by gift or by sale (or, in rare cases where the parties are less than careful, a transaction that is deemed part gift &#038; part sale.) However, there are potential tax consequences which are important to keep in mind.

Probably the most important tax trap is making a &quot;Transfer for Value&quot; of a life insurance policy. If a policy is sold, either for cash or in exchange for some other valuable consideration, the policy death benefit will fully taxable to the beneficiary unless the transfer qualifies for certain exceptions. The financial cost of having what was intended to be a tax-free death benefit become fully taxable is so high, it is imperative to check with a qualified professional before executing a policy transfer.

Other tax implications include potential gift tax on the fair market value of the policy if the transfer is by gift, potential income tax on deferred gains in the policy if the transfer is by sale, and potential income tax on the fair market value of the policy if the transfer is from an employer to an employee.]]></description>

		

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