Life Insurance Policy Holders

Life insurance policyholders won’t be treated as asset owners due to company’s investments. In a favorable private letter ruling, the IRS has held that the investments of certain insurance dedicated portfolio funds won’t cause holders of the associated variable life insurance policies to be considered the owners of such funds for tax purposes. The IRS found there were insufficient incidents of ownership to warrant such treatment, and each portfolio will be eligible for the exception from the excise tax imposed under the tax code. (PLR 201705003)