Income Taxation of Life Insurance
About the talk: “Life insurance has many tax benefits including tax-free death proceeds, cash value build up and exchanges. However, there are many exceptions to these tax-free benefits which can have disastrous impact on business or estate plans. This presentation will discuss exceptions (and how to avoid them) to tax-free death proceeds of definition of life insurance contract, transfer for value and employer owned life insurance. With regard to the general tax-free buildup of cash value, the impact of modified endowment contracts, dividends, withdrawals, loans and sales will be explored. The presentation will conclude with a discussion of Section 1035 tax-free exchanges. The wary tax practitioner should be alert to these unexpected income taxes which could destroy an otherwise well planned wealth creation or wealth transfer vehicle.”
Speaker bio: Lawrence Brody is a Partner of Bryan Cave LLP, an international law firm, resident in the St. Louis office. He is a member of its Private Client Service Group and its Technology, Entrepreneurial & Commercial Practice Client Service Group. He has been an Adjunct Professor at Washington University School of Law since 1968, teaching Estate Planning and Drafting, a visiting Adjunct Professor at the University of Miami Law School, teaching a course on Life Insurance, and is the author or co-author of numerous articles and books on the use of life insurance in estate and employee benefit planning, including two BNA Tax Management Portfolios, two books for the National Underwriter Company, and a number of volumes in the ABA Insurance Counselor Series.
Mr. Brody is a member of both The American College of Trust and Estate Counsel (ACTEC) and The American College of Tax Counsel, is a frequent participant at ALI-ABA estate planning programs and Society of Financial Professionals programs and teleconferences, and has spoken at all major life insurance industry programs (including the MDRT, LIMRA, the Top of the Table, AALU and the International Forum), many local estate planning council meetings, a number of state bar association conferences, and many national estate planning programs, including the Heckerling Institute, the Notre Dame Estate Planning Conference, the STEP program, the Southern Federal Tax Institute, the NYU Tax Institute, the NAEPC Annual Meeting, and regional ACTEC meetings as well as the Annual Meeting.
He is a member of the Advisory Committee for the Philip E. Heckerling Institute on Estate Planning, of the University of Miami School of Law, and a member of the Editorial Boards of BNA’s Estates, Gifts, and Trusts Journal, and the Society of Financial Service Professionals CLU Journal. Mr. Brody received the designation of Accredited Estate Planner by the National Association of Estate Planners and Councils, and was one of ten individuals awarded its Distinguished Accredited Estate Planner designation in the initial class, in 2004. Mr. Brody was named a Distinguished Law Alumni by Washington University School of Law in 2012.
Speaker bio: Donald 0. Jansen is Senior tax counsel, University of Texas System Office of General Counsel. He is a retired senior partner of Fulbright & Jaworski L.L.P. (now Norton Rose Fulbright). He is a Fellow of the American College of Trust and Estate Counsel and a Fellow of the American College of Tax Counsel. Mr. Jansen is a past Chairman of the Committee of Significant Current literature and Vice-Chair of the Insurance Committee, Probate and Trust Division, Real Property, Probate and Trust Law Section of the American Bar Association. Mr. Jansen is a specialist in Estate Planning and Probate Law certified by the Texas Board of Legal Specialization and is the past Probate Editor of the Newsletter of the Real Estate,. Probate and Trust Law Section of the State Bar of Texas. Mr, Jansen is a member of the Advisory Committee, Heckerling Institute on Estate Planning, University of Miami School of Law.