Transfer For Value Rule

Definition of "Transfer for value rule"

Donna Sloan real estate agent
Donna Sloan, Real Estate Agent Coldwell Banker Residential Brokerage - Southeast Metro at DTC

An exception to section 101 (a) (1) OF THE INTERNAL REVENUE CODE tax-exempt Status Of the DEATH BENEFIT in a life insurance policy where the transfer of the interest in the policy by the policy owner to another party in exchange for a valuable consideration results in the death benefit losing its tax-exempt status. However, the death benefit will not lose its tax-exempt status when the policy is transferred to the insured, to a partner of the insured, to a partnership in which the insured is a full partner, or to a company, provided the insured is a stockholder and/or an officer in that company.

Have a question or comment?
We're here to help.

*** Your email address will remain confidential.


Popular Insurance Terms

Popular Insurance Questions