Tax Reform Fuels Life Settlements in Two Ways

A press release from Abacus talks about the recently passed tax reform bill doubled the current exclusion of $5.49 million for a single person and $11 million for a couple.

Adding further interest to the life settlement option is that the tax reform bill that simplifies tax reporting by allowing the same tax treatment to people selling their policies as those who are surrendering them.  The new rule allows the policy seller to use their full premiums paid as their cost basis.