Thank you for your reply.

Have a nice day.


"cal-lester" <cal-lester[at]comcast.net> wrote in message
news:aiSRb.45021$U%5.238572[at]attbi_s03...
- quote -

"_JP" <YamYam[at]nospamsplease.megapathdsl.net> wrote in message
news:101fkl9c0b93166[at]corp.supernews.com...
- quote -

In addition to Cal's excellent post, there is one exception that I'll
mention here. A nonqualified deferred annuity can be continued at the death
of the owner/annuitant by a legal spouse, with no taxation and no required
distribution.

But during life, one can't effect an exchange. A change of ownership can be
made, but that might not be a good idea, for several not so obvious reasons.

What you need to reveal is what your objective is.

Brent D. Gardner, ChFC
Chartered Financial Consultant
http://members.cox.net/brentdgardner1378/

"Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go
to heaven if you die dumb. Become better informed. Learn from other's
mistakes. You could not live long enough to make them all yourself." - Hyman
George Rickover (1900-86), Admiral, US Navy, advocated development of
nuclear subs & ships

The Chartered Life Underwriter (CLU) and Chartered Financial Consultant
(ChFC), designations owned and exclusively offered by The American College,
signify the highest standards of academic study and professional excellence
in the financial services industry.

"_JP" <YamYam[at]nospamsplease.megapathdsl.net> wrote in
message news:101fkl9c0b93166[at]corp.supernews.com


Can a husband rollover the cash in his insurance policy to his wife's
insurance or annuity? I haven't seen anything like that, and manybe it was
a not-so-bright question with a very obvious answer, no.


NO. The so-called Cash Value (which is in reality the Guaranteed Reserve
of the policy, belongs WITH the policy. There is NOTHING to Roll-over.
However, depending on the type of policy, IF the Husband wishes to
either WITHDRAW (where permitted) or BORROW from the policy,
and in certain cases "contribute" that amount to his wifes (or anybody's)
policy. The same would apply to an Annuity.

However, it seems
like there are many exceptions in tax law when it comes to the matters
between married couples - almost like his money is hers and her money is
his. So... I had to ask.

What you are probably referring to here, is the IRS ruling, that a
Spouse can give, transfer or whatever any amount to the other
Spouse, without incurring any Gift Tax Implications...............


Also, let's say I have an UL policy from which I took out $1,000 loan a few
years ago. I have current CV of $500 in it, but I haven't been paying for
the premium for quite a while, so it's still in force but is slowly dying.

Decaying would be more approriate..........

A few years later, when the CV gets completely depleted and this policy
lapses, the $1,000 loan that I didn't pay back may become taxable. It's my
understanding that the total premium payment I have put into this policy
will be used as the cost base. Am I correct on this?

Yes & No. The $1,000 loan that you secured, was from the
General Funds of the Company, using $1,000 of the Cash
Value Reserve of the contract. Therefore, when the policy
Lapsed, there was still $1,000 left in the policy, which was
used to to REPAY the loan. No additional cost to you.


In other words, I
wouldn't have to worry about $1,000 extra taxable income if the total
premium payment up to that point exceeds $1,000?

That part IS correct. Your "basis" was more than the amount
that you received, therefore, IRS treats it as a return of premium
paid in, no tax due.

Cal Lester CLU

Can a husband rollover the cash in his insurance policy to his wife's
insurance or annuity? I haven't seen anything like that, and manybe it was
a not-so-bright question with a very obvious answer, no. However, it seems
like there are many exceptions in tax law when it comes to the matters
between married couples - almost like his money is hers and her money is
his. So... I had to ask.

Also, let's say I have an UL policy from which I took out $1,000 loan a few
years ago. I have current CV of $500 in it, but I haven't been paying for
the premium for quite a while, so it's still in force but is slowly dying.
A few years later, when the CV gets completely depleted and this policy
lapses, the $1,000 loan that I didn't pay back may become taxable. It's my
understanding that the total premium payment I have put into this policy
will be used as the cost base. Am I correct on this? In other words, I
wouldn't have to worry about $1,000 extra taxable income if the total
premium payment up to that point exceeds $1,000?


Thank you.