1. Jerry Vanderzanden, CLU, ChFCPRO
    Co-Founder, Coastal Financial Partners Group, California
    The owner of a life insurance policy can be changed. The current owner would contact the agent or the insurance company directly to obtain a form to make the change.

    In some cases the change may be a taxable transfer or gift of the policy from the current owner to the new owner. You would need to check with a life insurance professional and tax adviser to see if what you are planning to do might have unintended consequences.
    Answered on May 18, 2013
  2. 110 POINTS
    Bryan McCloskey, CASL®
    Old Security Trust, West Chester, PA
    Great question.  The simple answer is Yes.  Changing the owner to someone else is the same as giving them a "gift" of something that has value - usually considerable value!

    Because of this, when you change the owner of the policy to someone else (including a trust), it is considered a gift...however, sometimes the intent to do this is to avoid inflating the estate value, and to negotiate the estate tax laws.  It should be noted that if estate tax considerations are part of desire to change owners, according to current law, if the insured dies within three years of  the change in ownership, the value of the life insurance policy will be "brought back" into the estate of the original owner and considered as part of the original owner's estate.

    So, similar to most questions, the answer is Yes, the owner can be changed, but there are considerations to be taken in each situation.
    Answered on May 18, 2013

Add Your Answer To This Question

You must be logged in to add your answer.


<< Previous Question
Questions Home
Next Question >>