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I want to set up a life insurance policy, name Walnut Hill as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?

April 26, 2017Beneficiary deduct Life Insurance ownership PAYMENTS policy Premium walnut hill

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I want to set up a life insurance policy, name Walnut Hill as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?

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No. The IRS would not consider that a “completed gift” – they’d say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. Walnut Hill must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible.