My LTCI is included in a recent class action settlement. My reasons for having the LTCI have gone away earlier this year, so I am selecting a cash payment plus basic paid-up benefits.
In the information about the settlement, there is a section titled Taxes where it states: "Your policy, including any reduced benefits associated with the selection of a settlement option, is intended to be a federally tax qualified long term care insurance contract under Section 7702B(b) of the internal Revenue Code of 1986 as amended." I called to ask if I would receive a 1099-B in January 2024.
The CSR spoke to the tax people and then stated, "They only issue 1099's to beneficiaries."
What can I expect?