Tax Facts

48 / Is there any tax liability when two individual policies are exchanged for two interests in a group universal life policy?

Updated: October 02, 2024 at 01:55 PM
The IRS has ruled privately that the exchange of two individual life insurance policies for two participating interests in a group universal life insurance policy qualifies as a valid IRC Section 1035(a) transfer.1 Thus, there is no tax liability.





1.     Let. Rul. 9017062.

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