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I was referred to a family this week with a problem. The husband passed away in January and they are still waiting on proceeds from his life insurance.
He had a UL policy with a waiver of premium rider, he has been disabled for over 20 years and has paid no premium since. The problem is that about 15 years ago the IRS put a Tax Lien on his cash value and the Insurance Company wouldnt release the death benefit until the family could prove that this lien was satisfied. I said no problem lets call the IRS.
IRS records only go back 10 years! So we called the Insurance COmpany to tell them that and they said well they need something that says this lien is satisfied.
We called the IRS again and asked the same thing. The answer was that our records dont go back that far. I then asked if we could get documentation that this man owed no taxes at the time of his death and we were told that they had to official document like that.
These people are close friends of the family. I told them I would ask a some other professionals to see what they thought.
SO you guys are my professionals, what do you think?
He had a UL policy with a waiver of premium rider, he has been disabled for over 20 years and has paid no premium since. The problem is that about 15 years ago the IRS put a Tax Lien on his cash value and the Insurance Company wouldnt release the death benefit until the family could prove that this lien was satisfied. I said no problem lets call the IRS.
IRS records only go back 10 years! So we called the Insurance COmpany to tell them that and they said well they need something that says this lien is satisfied.
We called the IRS again and asked the same thing. The answer was that our records dont go back that far. I then asked if we could get documentation that this man owed no taxes at the time of his death and we were told that they had to official document like that.
These people are close friends of the family. I told them I would ask a some other professionals to see what they thought.
SO you guys are my professionals, what do you think?