08/15/2022
A provision of the Build Back Better Act threatens to louse up a lot of life insurance plans. The problem is in the provision titled "Special Rule for For Grantor Trusts". In many ways it is a sensible provision doing away with shenanigans that clever planners have concocted over many years largely to benefit the 1%, The rule could, however, have bad consequences for many well below the 1% who actually are not getting away with anything anybody finds objectionable. And I fear it could blindside them.
A provision of the Build Back Better Act threatens to louse up a lot of life insurance plans.