No longer able to afford the premiums, Kelly decides to transfer her exempt personally owned Permanent Life Insurance plan to her sister. At the time of transfer the Insurance Plan has a death benefit of $250,000, CSV of $50,000, and an adjusted cost basis of $30,000. Therefore the Fair market value for the Plan would be $50,000. At time of transfer what is going to be the taxable impact to Kelly ?

Answer rating: 100% (QA)

Taxable Impact of Transferring a Life Insurance Policy While transferring a life insurance policy ca... View the full answer