Leimberg on Stranger-Owned Life Insurance

Stephan R. Leimberg (Leimberg Information Services) has published Stranger-Owned Life Insurance:  Killing the Goose That Lays Golden Eggs!, also available on the Tax Analysts web site as Doc 2005-6866, 2005 TNT 108-20.  Here is part of the Conclusion:

Stranger-owned life insurance, whether or not it is connected to a charity, is a dangerous and disturbing trend.  Left unchecked, this short-sighted, too-good-to-be-true, something-for-nothing ploy could hurt the charities it is promoted to benefit, trigger a sea change in the way all life insurance is taxed and priced, and in extreme cases encourage criminal activity of the worst kind.