Tratamiento FiscalPregunta 462 de 716
In a cross-purchase buy-sell agreement funded with life insurance, the policies are owned by:
a.The individual owners, each on the other owners' lives
b.The business entity itself
c.An outside bank or lender
d.The estate of the deceased owner rather than by the surviving owners
Explicación
In a cross-purchase arrangement, each business owner buys and owns a life insurance policy on each of the other owners, so that when one dies, the survivors receive proceeds to buy the deceased's share directly from the estate. The business entity does not own the policies (that is an entity or stock-redemption plan), a bank is not involved, and the deceased's estate does not own them. The distinction between cross-purchase and entity plans centers on who owns the policies.
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Preguntas relacionadas de este tema
- Premiums paid for a personal life insurance policy are generally:
- For key-person life insurance that a business owns and is the beneficiary of, the federal tax treatment is generally that the:
- Under federal tax rules, employer-paid group term life insurance is income-tax-free to the employee on coverage up to:
- In an entity (stock-redemption) buy-sell plan, the life insurance is owned by:
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Revisado por John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verificar)