Proceeds on Life Insurance

Thursday, February 19, 2009

...What is your proceeds of disposition on a life insurance policy?...

he following circumstances result in proceeds of disposition for a policyholder and therefore a potential capital gain: (a) full or partial surrender of the policy, (b) a policy loan, (c) policy dividends, and (d) certain transfers of ownership of the policy.

The full surrender of a life insurance policy results in a capital gain equal to the policy's cash surrender value (CSV) less its adjusted cost base (ACB). Where there is a partial surrender, there is a pro-rated capital gain if the total CSV exceeds the ACB.

Loan amounts received from the insurer under the terms of the policy are included as proceeds. Loans and debts with third-parties are not included, nor is the assignment of the policy as collateral for a loan or debt.

Policy dividends are included as proceeds; however, where the dividend is used to pay premiums, the amount is not included.

With certain exceptions, the transfer of a policy to another owner is a disposition with proceeds equal to the CSV.

Posted 2009/02/19 at 17h17ET in Estate Planning.

Comments

Day 5: Writing a Novel—The Deep Blue Hold

Monday, November 21st, 2016 No work on the novel on Day 4. Note: Unedited writings from my notebook for this novel. Square bracket items represent added comments.
At 18:31—Office ... if I use Leänne instead of Leanne how will people react... Y esterday was Sunday and I took it off, plus I was dealing with some mental health issues. I know this story is something that is simply a matter of putting in the time to make it happen. I’m supposed to be working on it as much as I can but I haven’t been doing that. Two main reasons. It’s been a while since I’ve worked on a story. Then there’s the issues of my mental health. Things happen. I get down and it impacts on my writing. I might be using it as an excuse, but it’s clearly something I need to deal with. I have to find a schedule I can work with. Perhaps I need to put this first and cut out other things. Not sure but I will figure it out. A name for the hero came to me. For the moment going with Leanne or is it Leanna? Should be Le…

Writing a Novel: The Deep Blue Hold–Introduction

Thursday, March 9th, 2017 ... I fight my insecurities and doubts and I withdraw farther away from people and life ... I n November 2016 I started work on a new novel with the working title: The Deep Blue Cage. A few weeks after I started, I stopped. I was feeling too depressed about everything including the idea of writing a new novel. It happens to me at various times, with varying degrees, and it is debilitating. The ultimate issue was: Why bother? Why bother write another novel no one will read and no one will care about. I also found I was dreading the writing process more and more. It was painful to think about. I walked away and focused on other things. Or tried to. That didn’t work either. I felt trapped and unsure where I should head, what I should do. I even asked the big question, what the hell is life about anyway. There’s no one answer to this question despite the proclamations of some and because I believe I can think critically, can reason, I look at it from many a…

Day 6: Writing a Novel—The Deep Blue Hold

Tuesday, November 22nd, 2016 Note: Unedited writings from my notebook for this novel. Square bracket items represent added comments.
At 20:44—Office ... Lost at sea, she's rescued by a ship and wished she had never set foot on it.... N othing new on this story. Nothing came to me while I was sleeping or when on my errands. I thought something would come about, but nope. So be it. I have two chapters written. Not sure if they are any good but they are there. And so Chp. 3 to write. And I don’t see the scene because I’m not sure what should happen. The question is what is the cliffhanger. Nope. 3 about her, not the ship and crew. And I’ve already written the last line of the chapter. She wakes up and feels immense pain. Not sure if I should mention blood in the water. This chapter or the following. So it’s early dawn or not quite sunrise. And she’s in the cockpit unconscious. But how do I write it from her POV if she’s out. Hmmm. I can do it but should I do it? And I don’t w…

James Piper, Author

Search This Blog