Sponsored By
Trusts & Estates logo

Life Insurance ValuationLife Insurance Valuation

It involves a variety of methods and analytical assumptions

11 Min Read
Life Insurance Valuation

 

Often, the value of a life insurance policy becomes an issue when there’s a contemplated or actual transfer of a policy. The transfer may involve an estate or gift matter or moving a policy to an irrevocable life insurance trust (ILIT). When an estate or gift matter is involved, the Internal Revenue Service requires that a Form 712 Life Insurance Statement be included in the returns. This form is a statement prepared by an insurance company that provides policy values as of the date of transfer. So, a trustee or financial advisor will likely request an IRS Form 712 from the subject insurance company. 

Life insurance policies come in a variety of flavors but generally fall under the categories of whole life, universal life or term policie...

Unlock All Access Premium Subscription

Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!

Already Subscribed?

About the Authors

Daniel R. VanVleet

Managing Principal, The Griffing Group

Daniel R. Van Vleet is a Managing Principal in the Chicago office practice of The Griffing Group.  Mr. Van Vleet has extensive experience providing professional valuation advisory and economic analysis services in the fields of litigation, taxation, and corporate transactions. His advisory and analytical services have been provided in a broad range of industries and for a variety of purposes including fairness and solvency opinions, estate and gift taxation, income taxation, board of directors advisory services, shareholder disputes, marital dissolution, breach of contract matters, intellectual property disputes, corporate transaction disputes, bankruptcy and reorganization, purchase and sale advisement, and other litigation, tax, and corporate transaction related matters.

Mr. Van Vleet is a contributing author to seven business valuation books.  He has also lectured extensively and presented numerous advanced education seminars on the subjects of business valuation, pass-through entity valuation, litigation advisory services, and transaction advisory services.  In addition, he has testified as an expert witness at trial in state and federal courts, arbitrations, and depositions. Mr. Van Vleet has served as an adjunct professor of finance at the Kellstadt Graduate School of Business at DePaul University and as a Continuing Education Instructor at Northwestern University.  Prior to joining SRR, Mr. Van Vleet was a Managing Director with the valuation consulting practices of Stout Risius Ross, Duff & Phelps, and Willamette Management Associates.

Mr. Van Vleet is an International Past President of the American Society of Appraisers (ASA) and a former President of the Business Valuation Association of Chicago.  He is also a member of the Association of Insolvency and Restructuring Advisors (AIRA) and serves on the editorial review board for Trusts & Estates magazine.  Mr. Van Vleet has served as the ASA representative to both the International Valuation Standards Council (IVSC) and the Saudi Authority for Accredited Valuers (TAQEEM).  He is also the developer of the Van Vleet Model, which is a widely used pass-through entity valuation model.