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The Impact of the Tax Cuts and Jobs Act on Life Insurance

By Sidney Kess and Lee Slavutin
CPA Journal
May 2018 Issue

The Tax Cuts and Jobs Act of 2017 will have far-reaching effects on many areas of financial planning, and life insurance is no exception. The authors detail four changes with important ramifications for life insurance planning. The authors detail several strategies affected individuals can use to modify their arrangements in order to remedy deficiencies and take advantage of new opportunities.

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The passage of the Tax Cuts and Jobs Act of 2017 (TCJA) will mean sweeping changes in many areas of federal tax law. There are four provisions of the TCJA that will have the greatest affect on life insurance planning: 1) the increased lifetime gift tax exclusion, 2) the lower 21% maximum corporate tax rate, 3) new rules for life settlements, and 4) new rules for life insurance company reserves and deductions.


Published with permission from the CPA Journal.

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