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Sent to Tax Experts July 24 10:49 AM

I am a financial planner and had a curve thrown at me. Have you heard of the Goodman rule? It has to do with the forced sale of property with life insurance proceeds through a buy/sell agreement, I think. Can you point me to a source on the subject for my further study.

 

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Alhambra, Illinois

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July 24 11:33 AM (43 minutes and 42 seconds later)
         
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The Goodman Rule implies that for life insurance and annuities, the owner must also be either the insured (annuitant) or the beneficiary. If the owner, insured, and beneficiary are three different persons, then the death of the insured results in the owner making a taxable gift to the beneficiary.

please see here a nice implementation example - http://benlife.com/customer_service/legal_matters.html



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