Tax Consequences Of A Sale Of A Life Insurance Policy As A Viatical Settlement
To fully understand the tax consequences of a sale of a life insurance policy because of a shortened life expectancy (viatical settlement), you have to look at both the federal law and the law of the state in which you reside. (If you are considering selling a policy as a senior or life settlement because of your age, see: Tax Consequences Of A Sale Of A Life Insurance Policy As A Senior Or Life Settlement.)
For information about the federal tax on the sale of a life insurance policy as a viatical settlement, click here.
For information about the state tax on the sale of a life insurance policy as a viatical settlement, click here.
NOTE: We are not tax advisors. We recommend that you obtain legal and financial advice to determine the tax and ohter consequences to you resulting from entering into a Viatical Settlement.