Are viatical settlement investments appropriate for the small investor?
Viatical settlement investments should only be made to suitable investors or other persons that the viatical issuer reasonably believes, after inquiry, to be suitable investors. A good definition of a suitable investor would include: • An organization described in Section 501(c) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, with liquid net worth in excess of five million dollars ($5,000,000) according to its most recent audited financial statements. • A natural person who, either individually or jointly with the person’s spouse, (1) has a minimum net worth of one hundred fifty thousand dollars ($150,000) and had, during the immediately preceding tax year, gross income in excess of one hundred thousand dollars ($100,000) and reasonably expects gross income in excess of one hundred thousand dollars ($100,000) during the current tax year, or (2) has a minimum liquid net worth of two hundred fifty thousand dollars ($250,000). “Net worth
