Wenowhen Life Insurance Company insured Max Fung?s life for $600,000. Max?s recently deceased wife, Freida, was the designated beneficiary entitled to receive $600,000 at Max?s death. Under the terms of this life insurance policy Max Fung is entitled to terminate the policy and receive a calculated ?cash surrender value? or a series for payments either for a ten year period. The death benefit aspect of this policy was designed to provide financial assistance to Freida should she survive Max. Since this protection of Freida will not be necessary, Max has decided to terminate or sell this policy November 1. Max?s insurance agent has provided the following information: Cash surrender value (payable November 1) $400,000 Monthly payment if payments received over ten years $ 5,000 Premiums paid to Wenowhen Life Insurance Company $ 180,000 The installment payments will begin November 1, 2011. Max has inquired about possibly selling the policy receiving a quoted price of $475,000. MAX HAS ASKED YOU TO HELP HIM CONSIDER THE AFTER TAX CONSEQUENCES OF HIS OPTIONS REGARDING THE TWO INSURANCE POLICIES. YOU SHOULD PREPARE THE FOLLOWING: A TECHNICAL MEMORANDUM DESCRIBING THE 2011 TAX CONSEQUENCES OF THE THREE OPTIONS AVAILABLE RELATED TO THE WENOWHEN LIFE INSURANCE COMPANY POLICY. PLEASE CITE THE TAX CODES!,THE APPROPRIATE TAX CODES FOR THE RESEARCH QUESTION ARE IN THE ATTACHMENT.,ALSO I FORGOT TO MENTION THAT MAX FUNG'S WIFE FRIEDA HAD DIED,Hello I appreciate your help, is it possible you can have this answered by Sunday Night? Or at mid-night? Because I will be needing some time to review it before the assignment is due on 11/7/11 at 9:30am. Once again, thank you so much for your help!
Paper#3599 | Written in 18-Jul-2015Price : $25