How do I change the owner of a life insurance policy in Nevada?

Changing the owner of a life insurance policy transfers all control rights—the right to change beneficiaries, take loans, surrender the policy, and make coverage changes—to a new owner. The insured remains the same; only who controls the policy changes.

Common reasons for ownership changes include: transferring ownership to an irrevocable trust (ILIT) for estate planning purposes, transferring to a business for key person coverage, giving ownership to an adult child, or business succession planning. Once transferred, ownership cannot be easily reversed without the new owner's consent.

The transfer is executed by completing an ownership change form with the carrier, signed by both the current owner (transferring out) and acknowledging the new owner. If the new owner is a trust, the trust documents will be required. The carrier processes the change and issues confirmation.

Tax implications of ownership transfers are important to consider. Gifts of life insurance policies may have gift tax implications if the policy value exceeds the annual gift exclusion. If you transfer ownership and die within three years, the IRS may still include the death benefit in your taxable estate (the three-year rule). Coordinate with an estate attorney before transferring ownership for estate planning purposes.