Life Insurance Policies
We value life insurance policies, typically for gift/estate or income tax purposes. We have two kinds of Life Insurance Assignments:
Case Study
California Business Valuations was engaged by the client to determine the value of several Collateral Assignment Split Dollar Receivables for estate tax purposes. The decedent paid the premiums on three insurance policies ($1 million each). His estate owned receivables worth $3 million. California Business Valuations was engaged to value the market value of these receivables, which is a fraction of the premiums paid. The market value was about 20% of the nominal value. Thus, we were able to reduce the decedent’s estate by 80%.
Additionally, California Business Valuations saved the client from a lot of trouble because mistakes were made in structuring the deal correctly. There were flaws in the legal documents, which would have voided the discount. Through careful analysis of the legal documents, California Business Valuations discovered these errors before submitting the report and the issues were resolved. The client and the professionals involved were extremely happy with our work.
