CPAs & Life Settlements

Why Certified Public Accountants Need to Know About Life Settlements

“CPAs can help both individual and corporate clients or employers sell the right to collect on these otherwise dormant assets in the aftermarket.”
– Journal of Accountancy, 2001

It is important that CPAs who serve affluent seniors and corporate clients should understand the potential applications for life settlements and the opportunities they present.

Life Settlements for High Net Worth Seniors

As a CPA, you should be able to assist your clients in understanding the value of all the assets in their portfolio, including the true value of a life insurance policy in the secondary market. Understanding life settlement can have a significant impact on your senior clients’ financial situations, providing the solution to financial planning objectives, freeing cash for emergencies or long term care, creating flexibility for other investments or charitable giving, in short anything a senior client might want.

Business Applications for Life Settlements

It is important for CPAs to be aware of the business applications for Life Settlements. Life insurance policies for business owners genrally exist to protect for the loss of key employees, fund executive benefit plans, fund buy-sell agreements, and/or secure loans. When these concerns are no longer relevant due to retirement, change of ownership, or other factors, the policies are often surrendered or allowed to lapse. CPAs advising businesses can help them to discover that this asset may have significant value in the secondary market.

Veris Settlement Partners, Inc. is a multi-state viatical and life settlement broker. Veris Settlement Partners, Inc., and/or its affiliate firms Chesapeake Financial Settlements, LLC and Select Life Settlements Corporation, and/or one of its two directors as individuals, may be licensed as a life settlement broker or viatical settlement broker, or may be able to broker a life insurance policy owned by a resident of most states. For a list of states and licensing call Veris. Some or all of the proceeds from a life settlement may be taxable under federal or state income tax laws. Advice from a professional tax advisor is recommended. Veris Settlement Partners, inc. is not a viatical or life settlement provider. This Compliance Notice is current as of August 15, 2008 and is subject to change.