- 10,361
No, the only gift tax issue would be if one person received the funds and tried to distribute it to other people. This would create a gift tax implication beyond the exclusion.
Not true from my understanding.
In the OPs example, where Child A owns the policy & lists children B & C (and A of course) as benes; Child A is giving a gift of the DB to the other two.
I have had multiple estate attorneys confirm this.
You can list as many benes as you want if the insured owns/controls it. If not, the IRS/courts consider it as the non-insured owner giving a gift to the other two.
Read case #4 on this link
I didnt believe it at first, but its true. And as Vol's link shows, was the heart of the "Goodman Triangle".
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