An executive entered into an agreement that provided that he would receive 10 years of salary continuation payments. This is reflected on the Company's audited financial statements as a contingent liability. The Company and executive agree that the executive and spose will waive this benefit. Liability will come off the books. Upon executive's death, company will pay benefits to surviving spouse. Don't want these to be considered gifts, but company doesn't want obligation to require financial statement treatment. Are these benefits deductible? Or would company have to call these payments compensation to employee oor contractor to be able to deduct them. Thanks. Ed
------------------