Commercial Law & Contracts, Insurance, Tax Law

Tales from the Crypt -- Post-Mortem Planning Using Private Placement Insurance Products

by Gerald Nowotny on 5/9/2013

Overview - This article discusses the use of private placement products - private placement deferred variable annuities (PPVA) and private placement life insurance (PPLI)- in post mortem income tax and transfer tax...more

Legal Alert: Senate Finance Committee Hears Testimony on Proposal to Limit Access to Death Master File

by David Arrojo, Wilson Barmeyer, Marlys Bergstrom, Ellen Dunn, Phillip Stano, Steuart Thomsen, Mary Jane Wilson-Bilik | Sutherland Asbill & Brennan LLP on 4/22/2013

On April 16, 2013, the Senate Finance Committee held a hearing on “Tax Fraud and Tax ID Theft: Moving Forward With Solutions,” including testimony on proposals to restrict access to the Social Security Administration’s Death...more

Legal Alert: New Budget Proposals Once Again Target Insurance Companies

by Dennis Allen, Thomas A. Gick, Saren Goldner, Jeffrey Mace, Michael Miles, William Pauls, M. Kristan Rizzolo, Christopher Schoen, Linda Sciuto, W. Mark Smith, William Walderman, more +P. Bruce Wright | Sutherland Asbill & Brennan LLP on 4/16/2013

On April 10, the Obama Administration released its fiscal year 2014 budget (FY 2014 Budget). Of note, the FY 2014 Budget includes a number of tax proposals that target insurance companies or that otherwise would have a direct...more

The Family Loan Shark - Leveraging the AFR in the Taxpayer’s Favor Intra-Family Loans and Private Placement Insurance Products –...

by Gerald Nowotny on 3/13/2013

Overview - High net worth and income taxpayers find themselves in a world of hurt following tax reform at the end of 2012. The top marginal bracket for taxpayers with more than $400,000 (single and $450,000 married)...more

Captive Insurance Companies - The Statutory 831(B) Captive

by Stephen A. Malley, APC on 3/4/2013

Captive insurance companies can serve a number of objectives, including reduction of insurance costs through self-insurance, maintenance of insurance at predicted costs, control of the claims process, and direct access to...more

Legal Alert: 2013 Outlook for Insurance Regulation

by Sutherland Asbill & Brennan LLP on 1/31/2013

We end the first month of the year with a report on major insurance topics that we will be watching in 2013. Many of these developments can be traced to discrete events or market or political forces. This year, those...more

Health Reform + Related Health Policy News Update - December 19, 2012

by Polsinelli on 12/20/2012

In This Issue: - President Opposes Medical Device Tax Repeal or Replace - Senators Call for Extension of Comment Period on ACA Proposed Rules - AHA Urges U.S. District Court to Expedite Case Involving CMS' Payment...more

IRS Issues Final Regulations Implementing the Affordable Care Act’s Medical Device Excise Tax

by King & Spalding on 12/12/2012

On December 5, 2012, the Internal Revenue Service (IRS) published final regulations regarding the implementation of the excise tax applicable to the sale of certain medical devices, enacted by the Patient Protection and...more

Final Rules Issued for Health Care Reform Tax on Medical Devices, Effective January 1, 2013

by Jean C. Hemphill, Laura A. Kowal | Ballard Spahr LLP on 12/11/2012

The Internal Revenue Service (IRS) released final regulations and other guidance on the excise tax applicable to the sale of certain medical devices under the Affordable Care Act. Beginning January 1, 2013, a tax of 2.3...more

Policy Loans Can Bite You

by Charles (Chuck) Rubin on 11/9/2012

Life insurance policies can be great vehicles for income tax deferral. Part of this arises from the fact that earnings growth that occurs inside the policy is not subject to current income tax (and may never be taxed if the...more

Hurricane Sandy - Paths To Relief

by Patterson Belknap Webb & Tyler LLP on 11/8/2012

Many small and mid-size businesses in New York City suffered severe losses due to Hurricane Sandy. Below is a practical guide for business owners seeking relief. • Insurance. - The first place business owners...more

An American in Paris (or Shanghai or Tel Aviv) – Part 3: How to retain your account in a Foreign Financial Institution

by Gerald Nowotny on 11/7/2012

In my last installment, I discussed the benefits of a private placement insurance contract (life insurance or annuity) issued by a life insurer domiciled in Puerto Rico – Isla del Encanto – for Americans living...more

Rethinking COLI and BOLI – Part 1 - Using a Private Placement Variable Immediate Annuities as a Funding Vehicle for Corporate...

by Gerald Nowotny on 11/2/2012

Corporate owned life insurance assets (COLI) and Bank owned life insurance (BOLI) assets may account for close to $1 trillion or more of life insurance company assets. Virtually every major public corporation uses COLI. Why?...more

An American in Paris (or Shanghai or Tel Aviv) – Part 2: Using Tax-Advantaged Investment to Minimize U.S. Tax Reporting...

by Gerald Nowotny on 10/24/2012

If you are an American living overseas, the walls are closing in on you quickly. If your foreign bank hasn’t already closed your account, don’t hold your breath because it is probably coming quickly. A large number of...more

Ninth Circuit Holds that Dread of Tax Liability Does Not Trigger Duty to Defend

by Sedgwick LLP on 10/23/2012

In Conley v. First Nat’l Ins. Co. of Am., 2012 U.S. App. LEXIS 20281 (9th Cir., Sept. 27, 2012), the U.S. Court of Appeals for the Ninth Circuit considered whether a lawsuit alleging “anxiety” qualified as “bodily injury” for...more

An American in Paris (or Shanghai or Tel Aviv) – Part 1: Using Tax-Advantaged Investment Solutions While Living Overseas

by Gerald Nowotny on 10/3/2012

According to the American Citizens Abroad, there are five-seven million American citizens living outside of the United States on a fulltime basis. I for one am green with envy. I grew up in the Panama Canal Zone and know...more

Cashing in on a Life Insurance Policy

by Davis Brown Law Firm on 10/1/2012

Certain life insurance, such as whole life, carries a cash value with the policy. The premiums you pay each month go towards a certain amount of coverage for your beneficiaries when you die. In addition, a certain portion of...more

Credits for Annuities Sustained

by McNees Wallace & Nurick LLC on 9/24/2012

An equal division (3-3) of the Pennsylvania Supreme Court has resulted in the affirmance of a 2010 Commonwealth Court decision allowing credit against premiums tax liability for Pennsylvania Life and Health Insurance Guaranty...more

Income From Surrender Of A Life Insurance Policy

by Charles (Chuck) Rubin on 9/24/2012

The cash value of a surrendered life insurance policy is includable in gross income to the extent it exceeds the taxpayer's investment in the insurance contract. This excess is taxable as ordinary income....more

Much Ado About Nothing: The Tax Court Declines To Rule in Cigna Corp.

by Sutherland Asbill & Brennan LLP on 9/18/2012

On September 13, 2012, the United States Tax Court issued its much-anticipated opinion in Cigna Corp. v. Commissioner. In deciding the case, the court declined to rule on the issue of whether a life insurance company may...more

Tax Reduction and Deferral Strategies for Trial Attorneys - Part 1

by Gerald Nowotny on 9/17/2012

Trial attorneys are extremely vulnerable to changing tax landscape which is quickly becoming hostile territory. As the Bush tax cuts are due to expire at the end of December 2012, the tax increases will further erode trial...more

A Message to UBS! (and Other Swiss Private Banks)

by Gerald Nowotny on 9/14/2012

A. Overview - Over the course of the last twelve years that I have been active in the recommendation of private placement insurance solutions, I have had the opportunity to meet and solicit business with a number of...more

Using Private Placement Insurance Products to Achieve Tax Efficiency for High Net Worth Investors

by Gerald Nowotny on 7/25/2012

Originally published in Journal Of Taxation Of Investments - Summer 2012. Although no one can predict what Congress will do at any point, it is quite likely we will see higher income tax rates in the near future, along...more

Considering Operations Overseas? - What Every Nonprofit Should Know Before Crossing US Borders

by Venable LLP on 11/15/2011

Preliminary Considerations for Trade Activities Abroad Organizational Options - Specific/ Isolated Event v. Ongoing Presence ..Use of Association Management Company ..Host a...more

Brick Protection Corp. v. Alberta (Treasury) (ABCA) – Extended Warranty Companies are not in the Insurance Business

by Dentons on 9/21/2011

The Alberta Court of Appeal released its decision in this case on July 21, 2011. Brick Protection Corp. (Brick Protection; now Trans Global Warranty Corp.) was a sister corporation of the Brick Warehouse Corp. (The...more

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Commercial Law & Contracts › Insurance › Tax Law