{"id":6163,"date":"2026-10-27T05:22:52","date_gmt":"2026-10-27T05:22:52","guid":{"rendered":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/transfer-key-person-policy-ownership\/"},"modified":"2026-10-29T23:26:26","modified_gmt":"2026-10-29T23:26:26","slug":"transfer-key-person-policy-ownership","status":"publish","type":"page","link":"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/transfer-key-person-policy-ownership\/","title":{"rendered":"Transfer Key Person Life Insurance Policy Ownership"},"content":{"rendered":"\n<div class=\"wp-block-cover alignfull is-dark chg-hero\" style=\"min-height:460px;aspect-ratio:unset;\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-background-dim-60 has-background-dim wp-block-cover__gradient-background has-background-gradient\" style=\"background:linear-gradient(90deg,rgba(32,36,46,1) 0%,rgba(32,36,46,1) 55%,rgba(32,36,46,0.7) 100%)\"><\/span><img class=\"wp-block-cover__image-background wp-image-6162\" alt=\"A senior operations manager reviews production schedules and equipment logs at a workstation in a busy manufacturing facility.\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-23.jpg\" width=\"1376\" height=\"768\" srcset=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-23-150x150.jpg 150w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-23-300x167.jpg 300w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-23-768x429.jpg 768w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-23-1024x572.jpg 1024w, https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-senior-operations-manager-reviews-production-schedules-and-photo-23.jpg 1376w\" sizes=\"(max-width: 825px) 825px, 100vw\" fetchpriority=\"high\" decoding=\"async\"\/><div class=\"wp-block-cover__inner-container has-global-padding is-layout-constrained wp-block-cover-is-layout-constrained\">\n<p class=\"chg-eyebrow has-base-color has-text-color wp-block-paragraph\" style=\"text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Key Person Life Insurance | Miami, Florida<\/p><h1 class=\"wp-block-heading has-base-color has-text-color\" style=\"text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">Plan Who Owns Your Key Person Policy, With a CPA&#x27;s View<\/h1><p class=\"has-base-color has-text-color wp-block-paragraph\" style=\"font-size:clamp(0.875rem, 0.875rem + ((1vw - 0.2rem) * 0.625), 1.25rem);text-shadow:0 1px 3px rgba(0,0,0,0.6),0 0 18px rgba(0,0,0,0.35)\">NR CPAs &amp; Business Advisors helps business owners review how key person life insurance ownership fits the company&#x27;s tax and cash flow picture. Insurance is offered by Nischay Rawal, a licensed insurance agent, separately from the accounting practice.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+19542316613\">Call us today<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:0.85rem;color:#6b7280;margin-bottom:1.5rem\">By Nischay Rawal \u00b7 Published October 27, 2026<\/p>\n\n<article lang=\"en\">\n\n\n<p>Transferring ownership of a key person life insurance policy is possible, but the tax and policy steps come first. Moving a policy to an employee, a partner or a trust can change how the death benefit is taxed. This page walks through those steps in plain words, so you can review them before anything is signed.<\/p>\n<h2>What a Key Person Policy Is and When Ownership Transfers Come Up<\/h2>\n<p>Key person life insurance is a policy a business owns on someone whose death would cost the company money. The business pays the premiums, owns the policy and receives the death benefit. The benefit can help cover lost revenue, the cost of finding and training a replacement, or debts the company still owes. The <a href=\"https:\/\/www.iii.org\/publication\/insuring-your-business-small-business-owners-guide-to-insurance\/specific-coverages\/life-insurance-for-key-employees\">Insurance Information Institute<\/a> describes key person coverage as compensation for a business&#8217;s financial losses from the death or disability of a key employee.<\/p>\n<p>Ownership transfers usually come up at succession moments:<\/p>\n<ul>\n<li>An owner or key employee retires.<\/li>\n<li>A partner leaves the business.<\/li>\n<li>An employee moves into a bigger role.<\/li>\n<li>The buy-sell agreement gets rewritten.<\/li>\n<\/ul>\n<p>Three roles matter. The owner controls the policy. The insured is the person whose life is covered. The beneficiary receives the death benefit. These can be three different people or entities, so a change to any one of them needs review.<\/p>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/a-key-being-handed-across-a-desk-in-a-professional-office-se-photo.jpg\" alt=\"A set of keys being handed across a desk in a professional office.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<p class=\"wp-block-paragraph\">If you&#x27;re planning to move a key person policy to an employee, partner or trust, reach out for a coverage review before anything is signed. Talk it through with our team &#8212; we can walk you through how a situation like yours is usually handled and what your options are.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n<h2>The Transfer-for-Value Rule in Plain Words<\/h2>\n<p>The transfer-for-value rule can reduce the tax-free part of a death benefit when a policy is sold or handed over for something of value. When a policy transfers for valuable consideration, though, the excluded amount is capped. The cap equals the actual value of what was paid, plus the premiums and other amounts the new owner pays later.<\/p>\n<p>The cap does not apply where the transferee&#8217;s basis is determined by reference to the transferor&#8217;s basis, or where the transfer is to the insured, to a partner of the insured, to a partnership in which the insured is a partner, or to a corporation in which the insured is a shareholder or officer:<\/p>\n<ul>\n<li>A transfer to the insured.<\/li>\n<li>A transfer to a partner of the insured.<\/li>\n<li>A transfer to a partnership in which the insured is a partner.<\/li>\n<li>A transfer to a corporation in which the insured is a shareholder or officer.<\/li>\n<\/ul>\n<p>A gift of a policy to a family member, where the family member&#8217;s basis is figured in whole or in part by reference to the giver&#8217;s basis, can fall under the carryover-basis exception in <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">IRC \u00a7 101(a)(2)<\/a>(A); a sale for value generally does not, so review it before assuming the exclusion is kept or lost. A transfer to an employee is not on the list by job title alone. Whether any transfer creates tax depends on the facts. A CPA reviews the exact terms before anything changes hands.<\/p>\n<h2>Ways Ownership Can Move: To the Insured, Another Individual, or a Trust<\/h2>\n<p>Ownership can move to the insured, to an employee or partner, or to an irrevocable trust. Each path has different review items.<\/p>\n<ul>\n<li><strong>To the insured.<\/strong> This path is on the exception list, so the cap does not apply under that rule. The other review steps still apply.<\/li>\n<li><strong>To an employee or partner.<\/strong> The price, the written agreement and the transfer-for-value review all matter. Unless the person fits an exception, the cap may apply.<\/li>\n<li><strong>To an irrevocable trust.<\/strong> Trust ownership can change estate treatment. Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/2042\">IRC \u00a7 2042<\/a>, insurance receivable by other beneficiaries can be part of the estate if the decedent held incidents of ownership at death. <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/2042\">IRC \u00a7 2042<\/a> reads: &#8220;For purposes of the preceding sentence, the term \u201cincident of ownership\u201d includes a reversionary interest (whether arising by the express terms of the policy or other instrument or by operation of law) only if the value of such reversionary interest exceeded 5 percent of the value of the policy immediately before the death of the decedent.&#8221; Under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/2035\">IRC \u00a7 2035<\/a>, certain transfers made within three years of death can be added back to the estate.<\/li>\n<\/ul>\n<p>For 2026, the basic exclusion amount for estate and gift tax is $15,000,000, per the <a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/rp-25-32.pdf\">IRS revenue procedure<\/a>.<\/p>\n\n<figure class=\"wp-block-table is-style-stripes\"><table>\n<thead>\n<tr>\n<th>Path<\/th>\n<th>Who owns the policy afterward<\/th>\n<th>Main review items<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>To the insured<\/td>\n<td>The insured<\/td>\n<td>Transfer-for-value exception; insurer forms<\/td>\n<\/tr>\n<tr>\n<td>To an employee or partner<\/td>\n<td>The employee or partner<\/td>\n<td>Transfer price; transfer-for-value cap; buy-sell terms<\/td>\n<\/tr>\n<tr>\n<td>To an irrevocable trust<\/td>\n<td>The trust<\/td>\n<td>Estate inclusion; trust terms; insurer forms<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/figure>\n\n<h2>Policy-Form and Insurer Steps You Cannot Skip<\/h2>\n<p>A transfer is not complete until the insurer records the new owner on its own forms. The insurer&#8217;s paperwork controls the change, not a handshake or a memo.<\/p>\n<ul>\n<li>Ask the insurer which ownership change or assignment form it requires. An assignment hands the policy owner&#8217;s rights to someone else.<\/li>\n<li>Get written confirmation from the insurer that the new owner is on record.<\/li>\n<li>Check the beneficiary designation against the business agreement and the new ownership plan.<\/li>\n<li>Review the cash value, any policy loan and any riders. These move with the policy and can affect the transfer.<\/li>\n<\/ul>\n<p>The <a href=\"https:\/\/content.naic.org\/sites\/default\/files\/publication-lig-lp-consumer-life.pdf\">NAIC life insurance buyer&#8217;s guide<\/a> covers riders and questions to ask before buying, which helps when you read the policy.<\/p>\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<p class=\"wp-block-paragraph\">If you move forward, we help you organize the paperwork and keep it on file. Talk it through with our team &#8212; we can walk you through how a situation like yours is usually handled and what your options are.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n<h2>Step-by-Step Process and What to Expect<\/h2>\n<p>A careful transfer follows five steps in order. Each step feeds the next.<\/p>\n<ol>\n<li>Gather the policy, the buy-sell or business agreement, and the latest policy statement.<\/li>\n<li>Identify which transfer-for-value exception applies, if any, and write down the reason for the transfer.<\/li>\n<li>Set the transfer price and payment terms in writing, with the CPA reviewing the tax effects.<\/li>\n<li>Complete the insurer&#8217;s forms and confirm the insurer&#8217;s record of the new owner.<\/li>\n<li>Update business records, beneficiary designations and tax reporting after the insurer confirms the change.<\/li>\n<\/ol>\n<p>How long each step takes depends on the insurer&#8217;s processing and how complex the agreement is.<\/p>\n<h2>Tax and Reporting Questions to Settle with Your CPA<\/h2>\n<p>Your CPA should settle the price, the reporting and the buy-sell fit before the policy changes hands.<\/p>\n<ul>\n<li><strong>Price.<\/strong> Set and document any amount paid, in writing.<\/li>\n<li><strong>Reporting.<\/strong> Confirm how the transfer and later premiums appear on the business&#8217;s returns. See our key person insurance tax reporting guide. Some employer-owned policies also carry federal filing duties under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/6039I\">IRC \u00a7 6039I<\/a>.<\/li>\n<li><strong>Buy-sell fit.<\/strong> Check whether the agreement needs amendment. For partnerships, <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0620\/Sections\/0620.8701.html\">Fla. Stat. \u00a7 620.8701<\/a> covers buyouts of a departing partner when the departure does not result in dissolution and winding up of the partnership business.<\/li>\n<li><strong>Timing.<\/strong> Settle these items before signing, so the agreement and the policy match on the transfer date.<\/li>\n<\/ul>\n<h2>Why NR CPAs &amp; Business Advisors for This Review<\/h2>\n<p>NR CPAs &amp; Business Advisors is a Miami CPA firm. It helps families, professionals and business owners across the United States, including Indian-American households and business owners, choose and buy life insurance.<\/p>\n<ul>\n<li>Nischay Rawal is the responsible agent on this page and acts as a licensed insurance agent. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0626\/Sections\/0626.112.html\">Fla. Stat. \u00a7 626.112<\/a>, only a currently licensed and appointed agent may act as an insurance agent. <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0626\/Sections\/0626.112.html\">Fla. Stat. \u00a7 626.112<\/a> reads: &#8220;(1)(a) No person may be, act as, or advertise or hold himself or herself out to be an insurance agent, insurance adjuster, or customer representative unless he or she is currently licensed by the department and appointed by an appropriate appointing entity or person.&#8221;<\/li>\n<li>Insurance is offered by the licensed agent, separately from the accounting practice.<\/li>\n<li>If the firm accepts a commission on a policy, it discloses that to the client in writing, as <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0400-0499\/0473\/Sections\/0473.3205.html\">Fla. Stat. \u00a7 473.3205<\/a> requires.<\/li>\n<li>A coverage review is the first meeting. Our team reviews the policy, the business agreement and the tax questions together.<\/li>\n<li>For more on how the pieces fit, read our <a href=\"\/life-insurance-guides\/buy-sell-agreement-life-insurance\/\">buy-sell agreement life insurance<\/a> guide.<\/li>\n<\/ul>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/nrcpas.com\/life-insurance-guides\/wp-content\/uploads\/2026\/10\/male-workshop-owner-repairing-metal-parts-at-workbench-with-photo.jpg\" alt=\"A man in a workshop stands beside a cluttered workbench, working on metal parts with tools.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n<h2>Frequently Asked Questions<\/h2><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>What is the purpose of key person life insurance?<\/summary><p class=\"wp-block-paragraph\">It helps a business cover financial losses if a key employee or owner dies. Our key person life insurance guide explains the basics.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Can you transfer the owner of a life insurance policy?<\/summary><p class=\"wp-block-paragraph\">Yes, through the insurer&#8217;s ownership forms. Review the transfer-for-value rule and the policy terms first.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Can a son buy a life insurance policy for his father?<\/summary><p class=\"wp-block-paragraph\">If the son pays for an existing policy on his father, the transfer-for-value cap generally applies, because a son is not on the <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">IRC \u00a7 101(a)(2)(B)<\/a> list and a full-value purchase does not carry over the seller&#8217;s basis; a gift with carryover basis under <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/101\">\u00a7 101(a)(2)(A) is treated differently<\/a>, while a new policy the son applies for on his father raises insurable-interest and consent questions instead, so review the facts first.<\/p><\/details><details class=\"wp-block-details chg-faq is-layout-flow wp-block-details-is-layout-flow\"><summary>Who should not be named beneficiary?<\/summary><p class=\"wp-block-paragraph\">Name the beneficiary that the business agreement and the policy&#8217;s purpose call for. Review the designation again after any ownership change.<\/p><p>If you&#8217;re planning to move a key person policy to an employee, partner or trust, reach out for a <a href=\"https:\/\/nrcpas.com\/contact\">coverage review<\/a> before anything is signed. Taking that first look is how you protect your loved ones and your business.<\/p><\/details><\/article>\n<footer class=\"disclaimer\"><em>NR CPAs &amp; Business Advisors, LLC, 782 NW 42nd Avenue, Suite 534, Miami, FL 33126. Life insurance is offered by Nischay Rawal, a Florida-licensed life and health insurance agent (license G066337). This page is general information about life insurance, not tax, legal or investment advice, and not an offer of any specific policy. Coverage, premiums and benefits depend on the issuing insurer&#x27;s underwriting and the policy&#x27;s terms. Policy loans and withdrawals reduce cash value and the death benefit and may have tax consequences.<\/em><\/footer>\n\n\n<div class=\"wp-block-group alignwide has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n\n<div class=\"cta-dose-mid wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Not sure what your next step is?<\/h3><p class=\"wp-block-paragraph\">Talk it through with our team &#8212; we can walk you through how a situation like yours is usually handled and what your options are.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13058723096\">Schedule a coverage review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Schedule a coverage review<\/a><\/div><\/div>\n<\/div>\n<h2 class=\"wp-block-heading has-text-align-center\">How we approach key person policy ownership<\/h2>\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--check\"><\/span><\/p><h3 class=\"wp-block-heading\">Start with the policy<\/h3><p class=\"wp-block-paragraph\">We look at the policy you have, its owner, insured and beneficiary, and the forms the insurer requires before any change is made.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--lightbulb\"><\/span><\/p><h3 class=\"wp-block-heading\">Add the tax view<\/h3><p class=\"wp-block-paragraph\">A CPA&#x27;s perspective helps you see how an ownership change may affect the business&#x27;s tax position and cash flow.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--document\"><\/span><\/p><h3 class=\"wp-block-heading\">Keep the records straight<\/h3><p class=\"wp-block-paragraph\">We help you organize the policy documents, transfer paperwork and company records so the file is clear for everyone involved.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--users\"><\/span><\/p><h3 class=\"wp-block-heading\">Serving families and business owners<\/h3><p class=\"wp-block-paragraph\">We work with families, professionals and business owners across the United States, including Indian-American households and business owners.<\/p><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group has-base-color has-accent-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--accent,#20242e);color:var(--wp--preset--color--base,#ffffff);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-base-color has-text-color\">Review before you sign<\/h3><p class=\"wp-block-paragraph\">Changing who owns a life insurance policy can have insurance and tax consequences. Review the policy terms and the tax effects with your agent before you sign any ownership transfer form.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+19542316613\">Call us today<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today<\/a><\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-surface-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center\">Steps in a coverage review<\/h2>\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">1. Share your policy details<\/h3><p class=\"wp-block-paragraph\">Tell us about the policy, the business and the people named in the coverage so we can understand your current arrangement.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">2. Review the ownership options<\/h3><p class=\"wp-block-paragraph\">We explain the choices in plain words, including how the policy terms and the insurer&#x27;s forms apply to your situation.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">3. Look at the tax and cash flow picture<\/h3><p class=\"wp-block-paragraph\">We walk through how the proposed change could affect the business and the owners from a CPA&#x27;s point of view.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">4. Decide on next steps<\/h3><p class=\"wp-block-paragraph\">You decide whether to proceed. If you move forward, we help you organize the paperwork and keep it on file.<\/p><\/div><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-base-color has-primary-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-4d466591 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--primary,#20242e);color:var(--wp--preset--color--base,#ffffff);padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center has-base-color has-text-color\">Protect your loved ones with a clear ownership plan<\/h2>\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-0aa01211 wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+19542316613\">Call us today<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/nrcpas.com\/contact\">Call us today<\/a><\/div><\/div>\n<\/div>\n\n<h2 class=\"wp-block-heading\">Related practice areas<\/h2><ul class=\"wp-block-list\"><li><a href=\"\/life-insurance-guides\/key-person-insurance\/\">Key Person Insurance for Business Owners: Protect Your Company&#8217;s Future<\/a><\/li><\/ul>\n<!-- chg:section-siblings -->\n<nav aria-label=\"More in this section\">\n<h2>More in this section<\/h2>\n<ul><li><a href=\"\/life-insurance-guides\/key-person-insurance\/transfer-key-person-policy-to-departing-owner\/\">Moving a Key Person Policy to a Departing Owner: The Transfer-for-Value Rule Explained<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/underwriting-questions-key-person-insurance\/\">What Health Questions Do Underwriters Ask for Key Person Life Insurance?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/what-are-exceptions-to-transfer-for-value-rule-for-life-insurance-policies\/\">What are the exceptions to the transfer-for-value rule for life insurance policies?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/what-are-the-differences-between-key-person-insurance-and-life-insurance\/\">What are the differences between key person insurance and life insurance?<\/a><\/li><li><a href=\"\/life-insurance-guides\/key-person-insurance\/what-are-the-disadvantages-of-key-man-insurance\/\">What are the disadvantages of key man insurance?<\/a><\/li><\/ul>\n<\/nav>\n<!-- \/chg:section-siblings -->","protected":false},"excerpt":{"rendered":"<p>Moving a key person policy to an employee, partner or trust? Review the transfer-for-value rule, insurer forms and tax steps before you sign.<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":16,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"chg_review":"","chg_sendback":"","chg_canonical":"","chg_lang":"","chg_hreflang":"[{\"hreflang\": \"en\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/transfer-key-person-policy-ownership\/\"}, {\"hreflang\": \"es\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/es\/seguro-persona-clave\/transferir-titularidad-poliza-persona-clave\/\"}, {\"hreflang\": \"x-default\", \"href\": \"https:\/\/nrcpas.com\/life-insurance-guides\/key-person-insurance\/transfer-key-person-policy-ownership\/\"}]","chg_jsonld":"[{\"@context\": \"https:\/\/schema.org\", \"speakable\": {\"@type\": \"SpeakableSpecification\", \"cssSelector\": [\"article > p:first-of-type\", \".wp-block-details p\", \"article > h1\"]}, \"author\": {\"@type\": \"Person\", \"name\": \"Nischay Rawal\", \"url\": \"https:\/\/nrcpas.com\/author\", \"jobTitle\": \"Managing Partner, CPA, EA and Licensed Life Insurance Agent\", \"sameAs\": [\"https:\/\/licenseesearch.fldfs.com\/Licensee\/2306161\", \"https:\/\/www.myfloridalicense.com\/portalsearches\/VerifyLicensee\/LicenseDetail?ID=D6E76E58125054CFA98C8D92AF9DBC44\", \"https:\/\/www.taxbuzz.com\/florida\/miami\/nr-cpas-and-business-advisors-llc\", \"https:\/\/x.com\/nrawal786\", \"https:\/\/www.linkedin.com\/in\/nischay-rawal-cpa-ea-22741924a\/?isSelfProfile=false\"]}, \"publisher\": {\"@type\": \"Organization\", \"@id\": \"https:\/\/nrcpas.com\/life-insurance-guides\/#organization\", \"name\": \"NR CPAs & Business Advisors\", \"url\": \"https:\/\/nrcpas.com\/\"}, \"reviewedBy\": {\"@type\": \"Person\", \"name\": \"Erika Trinidad\", \"jobTitle\": \"Accountant\"}, \"inLanguage\": \"en\", \"mainEntity\": [{\"@type\": \"Question\", \"name\": \"What is the purpose of key person life insurance?\", \"acceptedAnswer\": {\"@type\": \"Answer\", \"text\": \"It helps a business cover financial losses if a key employee or owner dies. 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