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I have a retired trial lawyer that says his mother is doing some estate gifting and planning, and he wants to know if he gets a long term care policy, and she pays the premium, will he have to pay taxes on that amount. Opinions?
Tax Question?
- Thread starter billberry12
- Start date
It's not taxable income to him. She might have to fill out a gift tax form for the IRS and it might reduce the amount of her estate that is excluded from estate taxes.
But it is certainly not, in any way shape or form, considered taxable income to him for federal income tax purposes.
But it is certainly not, in any way shape or form, considered taxable income to him for federal income tax purposes.
- Thread starter
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Thanks. I didn't think so, but just wasn't sure.
Bill
Bill
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Is there any realistic way he could be considered her employee?
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who's the owner of the policy? is the premium going to be paid direct or routed through the person? Is it going to be a tax qualified policy?
- Thread starter
- #6
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It will be a tax qualified policy. Not sure how they want to set up the payment, but I don't think LTCI has a "policyowner" other than the insured does it? Most apps just have a place to enter the "payor" that I've seen, unlike life contracts. Am I wrong?
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