Tuesday, April 30, 2024

How Hartford Life and Other Insurance Companies Tricked their Agents and Got People in Trouble with the IRS - HG.org

How Hartford Life and Other Insurance Companies Tricked their Agents and Got People in Trouble with the IRS - HG.org



Agents from Hartford and other insurance companies were shown ways to sell large life insurance policies. This “Welfare Benefit Trust 419 plan or 412i plan should be shown to their profitable small business owners as a cure for paying too much taxes.


A Welfare Benefit Trust 419 plan essentially works like this:



• The business provides a fringe benefit for their employees, such as health insurance and life insurance.

• The benefit is established in the name of a trust and funded with a cash value life insurance policy

• Here is the gravy: the entire amount deposited into the trust (insurance policy) is tax deductible to the company,and

• The owners of the company can withdraw the cash value from the policy in later years tax-free.
Read more by clicking the link above!

3 comments:

  1. Lance Wallach Lance Wallach
    Business Owner at National Offices of Lance Wallach
    Following
    captive insurance and tax shelters IRS
    Sep 23, 201514 views2 Likes2 CommentsShare on LinkedInShare on FacebookShare on Twitter
    HG.org Legal Resources
    Captive Insurance and Other Abusive Tax Shelters
    By Lance Wallach, CLU, CHFC

    Firm's Profile & Articles


    ► Need a Lawyer? Let Us Help You
    Captive insurance arrangements that are funded with cash-value life insurance are the hot tax shelter for 2014. But serious questions exist whether they work as the promoter’s promise they will do.
    During the savings & loan crisis of the late 1980s and early 1990s, the courts used a particular acronym to describe cases where a physician had made an obviously bad investment in an oil & gas deal, and then sued to try to recoup their losses. Such a case was known as a "DDC", which was short for "Dumb Doctor Case".

    Some doctors have a habit of getting into deals that don't make any sense. There's a saying that doctors will crawl on their bellies over broken glass for a mile to get to a bad deal, but they won't walk across the street to get to a good one.

    Life insurance companies started pushing 412i plans and 419 welfare benefit plans in the 90s to business owners. When I spoke at the annual national convention of the National Society of Actuary’s about the probl

    ReplyDelete
  2. Lance Wallach Lance Wallach
    Business Owner at National Offices of Lance Wallach
    Following
    captive insurance and tax shelters IRS
    Sep 23, 201514 views2 Likes2 CommentsShare on LinkedInShare on FacebookShare on Twitter
    HG.org Legal Resources
    Captive Insurance and Other Abusive Tax Shelters
    By Lance Wallach, CLU, CHFC

    Firm's Profile & Articles


    ► Need a Lawyer? Let Us Help You
    Captive insurance arrangements that are funded with cash-value life insurance are the hot tax shelter for 2014. But serious questions exist whether they work as the promoter’s promise they will do.
    During the savings & loan crisis of the late 1980s and early 1990s, the courts used a particular acronym to describe cases where a physician had made an obviously bad investment in an oil & gas deal, and then sued to try to recoup their losses. Such a case was known as a "DDC", which was short for "Dumb Doctor Case".

    Some doctors have a habit of getting into deals that don't make any sense. There's a saying that doctors will crawl on their bellies over broken glass for a mile to get to a bad deal, but they won't walk across the street to get to a good one.

    Life insurance companies started pushing 412i plans and 419 welfare benefit plans in the 90s to business owners. When I spoke at the annual national convention of the National Society of Actuary’s about the probl

    ReplyDelete
  3. Grist Mill Trust
    Nova
    Niche
    Sea Nine Veba
    SADI Trust
    Beta 419
    Millennium
    Bisys
    Creative Services Group
    Sterling Benefit Plan
    Compass 419
    Niche 419
    CRESP
    American Benefits Trust
    National Benefit Plan and Trust
    ABT
    Professional Benefits Trust
    Old Mutual
    Allmerica Financial
    American Heritage Life
    Commercial Union Life
    National Life of Vermont
    Old Line Life
    Security Mutual Life
    West Coast Life
    ECI Pension Services
    Pension Professionals of America
    ABI
    Hartford
    AIG
    Indy Life
    Indianapolis Life
    Advantage
    Jacksom National
    Jefferson-Pilot Life
    Lincoln Benefit Life
    Lincoln National Life
    Manufacturers Life
    Massachusetts Mutual
    Metropolitan Life
    Midland Life
    Minnesota Mutual
    Principal Life
    Reliastar
    Security Mutual
    USG Annuity & Life
    Western Reserve Life Assurance
    Old Mutual
    Allmerica Financial
    American Heritage Life
    Commercial Union Life
    National Life of Vermont
    Old Line Life
    Security Mutual Life
    West Coast Life

    ReplyDelete