In addition to advising clients about selling their policies, lawyers might also be asked by clients about investing in other people's policies through the companies that buy them.
When giving such advice, lawyers need to be aware of how risky these investments can be, says Stephan Leimberg of Bryn Mawr, Pa., co-author of Tax Planning With Life Insurance.
One estate planning attorney has already been sued for malpractice in giving such advice. The client alleges that she lost $260,000 because the company fraudulently sold her an investment in policies that didn't even exist, according to the attorney bringing the lawsuit, Craig Goldenfarb of West Palm Beach, Fla.
The client claims the attorney should have done more investigation of the company, says Goldenfarb.
When a policy is bought from a terminally ill person, the sale
is called a "viatical settlement." 'When it's bought
from someone who isn't terminally ill, it's typically called a "life
settlement," but is sometimes called a "senior settlement," "lifetime
settlement" “LifeStyle Settlement” or "high
net worth transaction."
Continued: About the Viatical Industry
|Not Registered In Texas|
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