Preserve and Protect Financial Options for Seniors

Press Release

Ranking Member Senator Mel Martinez (R-FL) and Chairman Senator Herb Kohl (D-WI) of the Special Committee on Aging examined the Life Settlement Industry and the potential for abuse and fraud - such as lack of transparency and stranger-originated-life-insurance policies ("STOLIs") - when selling these policies and the ambiguous tax implications associated with these transactions.

"In today's turbulent economic environment, we want to preserve and protect seniors' financial assets and resale options in all financial markets," said Martinez. "Seniors should have comfort that they are receiving the best value for their assets and they deserve full accountability and transparency when engaging in life settlement policy transactions."

Martinez noted our seniors and their beneficiaries need strong guidance from the Internal Revenue Service and appropriate clarification on all tax liabilities associated with life settlements policies.

"In today's uncertain economy, many of our nation's seniors are living with fixed financial budgets," Martinez said. "We need to ensure that no matter who prepares their tax returns, seniors and their beneficiaries will be treated consistently and fairly by the tax code, and that they pay the appropriate tax due without the current ambiguities."

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