Description: Article from The Actuary, December 1971 – volume 5 - Issue 10 that talks about tax laws and regulations. In particular, this article discusses the formula, developed by Charles T. Kemmerer, for calculating the remainder interest in a charitable remainder unitrust which falls on the death of the survivor of two or more persons.

Description: After the 1986 tax-reform legislation, SPWL currently enjoys a tax treatment preferential to many other financial products. The author suggests that this distinction may not last long.

Description: This article discusses the June 23, 1977 Supreme Court ruling that a life insurance company must include the net valuation portion but not the associated loading of deferred and uncollected premiums in its assets and gross premium income as well as in its reserves in computing its tax liability. Some companies have been using this procedure or a modification of it for the past few years. Other companies have been filing returns conforming to IRS regulations which required including gross deferred and uncollected premiums. These companies may need to file amended returns for open tax years if they paid taxes not due or understated usable operations/loss carry forwards. The author then goes on to review the implications of the court’s decision for companies filing amended returns.

Description: A recent list of government publications announces the publication of a volume entitled Actuarial Values I: Valuation of Last Survivor Charitable Remainders-Part B-Two-Life Tables for Untirusts and Pooled Income Funds - Internal Revenue Service Publication 7233 11-71 available from the Superintendent of Documents, U. S. Government Printing Office, Washington, D. C. 20402 for $4.50. The article outlines the actuarial formulas used in determining the tables used by the IRS.

Description: The U.S. Technical and Miscellaneous Revenue Act of 1988 has created a very significant administrative problem for companies having a large block of “grandfathered” universal life business. The problem is that seemingly harmless future changes in benefits are categorized as “material changes,” causing a policy to lose its grandfather status and subjecting it to the “modified endowment” rules.

Description: Recap of two summer 1967 tax court decisions stemming from the 1959 Life Insurance Company Income Tax Act