Stranger Owned Life Insurance (SOLI)
By Martin Shenkman, CPA, BMA, JDMany people age 75 and older are offered loans to buy a life insurance policy. After two years the policies are often bought out by an investor group. This sounds like free money, but is actually subject to lots of risks: insurability issues, fraudulent applications, non-recovered insurance proceeds could create huge liability for you. Insurance companies and regulatory agencies are cracking down, tax consequences under split dollar regulations and more.
Interview with Richard L. Harris
