A life insurance policy may be used as collateral to secure a loan. If you die before the loan is repaid, the lender will be repaid from the policy’s death benefit proceeds before beneficiaries can ...

Generally, no. As a general rule, death proceeds are excludable from the beneficiary’s gross income. 1 Death proceeds from single premium, periodic premium, or flexible premium policies are received ...

Life insurance proceeds, typically paid directly to a beneficiary, are not generally subject to income tax as they're seen as reimbursement for a loss. However, exceptions do exist. For instance, if ...

The County-City Building in Lincoln serves as the home to courtrooms in Lancaster County. (Paul Hammel/Nebraska Examiner) LINCOLN — Who deserves $3.6 million in life insurance proceeds: the family of ...

Succession planning for closely held business owners has always carried estate tax risks, but the Supreme Court's 2024 decision in Connelly v. United States has made those risks more costly (to the ...

In a recent case owners of a closely held business got bad news. It is common to have a closely held business own life insurance on the owners (e.g., shareholders if it is a corporation). When an ...

In Connelly v. United States, the U.S. Supreme Court addressed a critical issue regarding whether life insurance proceeds used to redeem the shareholder’s stock affect the valuation of the stock for ...

A recent case demonstrates the impact that a stock-purchase agreement and life insurance can have (or not have) on the valuation of a closely held company for estate tax purposes. Before diving into ...

In a landmark decision earlier this year, the Supreme Court addressed a crucial issue regarding the valuation of shares in closely held corporations for federal estate tax purposes. Michael and Thomas ...

Life insurance is a crucial financial tool that provides a measure of financial security to individuals and their families. In the event of the policyholder's death, the beneficiaries receive a lump ...