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NHF remain fixed at the various initial death benefit amounts
even if the death benefits increased under the various policies.
Under the SDIAs, as long as the annual premiums were paid,
the family trusts were entitled to receive death benefits in the
amounts stated in the policies plus any increase in death
benefits under the policies.
D. The Insurance Policies on Petitioner’s Daughter and Son-In-
Law
On October 17 and 18, 1995, the TRP trust bought BUL B140146
and WRL 01B0349121 on the life of Traci Rae Pontello. On October
17 and 18, 1995, the FJP trust bought BUL B140145 and WRL
01B0349122 on the life of Frank Pontello.
E. Petitioner’s Payments to NHF and to the Insurance Companies
Petitioner sent checks for $93,000 to NHF on November 30,
1995, October 24, 1996, October 23, 1997, and October 21, 1998.
NHF was not obligated to use petitioner’s funds to pay the
premiums on the insurance policies on the lives of his daughter
and son-in-law, but petitioner expected NHF to do so. On the day
that NHF received petitioner’s payments, NHF paid to the
insurance companies its $92,722 portion of the premiums for the
life insurance policies on the lives of Traci Rae Pontello and
Frank Pontello. Each year from 1995-98, the trusts paid $7,278
to the insurance companies for premiums on those insurance
policies.
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Last modified: May 25, 2011