3 Minutes with 3 Mark ‘The Goodman Triangle’ by Bruce Alfredson

3 Distinct Parties to a Contract: When these parties are all different an unexpected gift tax liability may result. This three-party scenario is commonly referred to as a “Goodman Triangle” after the 1946 Tax Court Case. To avoid the Goodman Triangle tax trap, most clients will use an irrevocable life insurance trust(ILIT) to own the policy and receive the death benefit. Watch Video