• Corporate-Owned Life Insurance Contracts: Notice and Consent Requirements
  • March 2, 2010 | Author: Steven B. Lapidus
  • Law Firm: Greenberg Traurig, P.A. - Miami Office
  • On May 26, 2009, Treasury issued Notice 2009-48, which provides additional guidance regarding the treatment of employer-owned life insurance contracts under Section 101(j) of the Internal Revenue Code of 1986, as amended (the "Code"), and the recordkeeping and return requirements under Section 6039I of the Code. Employer-owned life insurance contracts generally refer to life insurance contracts that cover the lives of a company‚Äôs employees and with respect to which the company is the owner and beneficiary of all or some portion of the death benefits. Companies may invest in these employer-owned life insurance contracts for a variety of reasons, including (i) key man life insurance coverage, (ii) funding various qualified and nonqualified deferred compensation and benefit arrangements, and (iii) funding the payment obligations associated with certain buy-sell agreements.