Attribution Rule

In the area of life insurance and financial services the term attribution rule refers to the legislation under which capital gains, dividends or interest earned on assets you transfer to your spouse will be treated as your own for tax purposes.

The dividends or interest relating to property transferred to children under 18 also will be attributed back to you.

Of course insurance always has exceptions. The exception to this rule is that capital gains relating to property transferred to children under 18 will not be attributed back to you.

Talk to your insurance agent, financial planner or accountant about your particular needs.

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