notinthebiz
My father purchased and has made 100% of the premium payments toward a 10 year paid in full whole life policy. His reason for doing this was to be able to withdraw the cash value side of the policy after the 10 year period (not immediately after the 10th year but sometime after 10 years, maybe 20 years) and in turn I would receive a paid in full life insurance policy. I think the life insurance side is $35,000 or $45,000. I have no problem in letting him do this since I have not paid a dime to it but wonder if I can begin replacing the cash value side once he withdraws it? Also, would this be a smart move and if so at what age should I begin this process?
Finally, more of an operational question but since I am listed as the owner on the the policy and my wife is the beneficiary I would have to make the withdraw and give the money to my father. By doing this how is that reflected if at all for tax purposes. Can I show that as a gift?
Finally, more of an operational question but since I am listed as the owner on the the policy and my wife is the beneficiary I would have to make the withdraw and give the money to my father. By doing this how is that reflected if at all for tax purposes. Can I show that as a gift?