Tax Considerations

Life Settlement Tax Considerations

It might seem that tax codes are designed to confuse the average American, but seniors looking to maximize their retirement income will benefit greatly from understanding tax revisions that can make life settlements more favorable. Magna’s “Life Settlement Tax Considerations” to the changes in the tax laws and their effect on the life settlement market is available for anyone seeking more information about the new tax provisions.*

Among other information, this white paper includes:

• An explanation about the difference between life settlements and viatical settlements, and the tax implications for each.
• A discussion of the specific provisions included in the 2018 Tax Cuts and Jobs Act, such as the doubling of the estate tax exemption and the allowance for insurance premiums to be included as part of the tax basis.
• An analysis of life settlements in the current tax climate and the possibility that they can provide a retirement windfall for more seniors today because of the new provisions.

To read the white paper in its entirety, please fill out the form to gain access: