Split-Dollar Arrangements in Estate Planning: Leveraging Gift, Estate, and Income Tax Benefits

This CLE/CPE course will guide estate planning counsel in effectively using split-dollar arrangements to provide flexibility for clients. The panel will offer a detailed review of appropriate tax methods and policies, techniques for structuring the agreement, and special considerations for termination.

Estate planning has become a complicated endeavor, making flexibility a desired attribute. Life insurance offers a level of certainty and liquidity in this complicated estate planning environment.

Among the various estate planning uses of life insurance, the private split-dollar arrangement stands out as a useful tool. However, there are many complexities that counsel must be prepared to overcome to maximize its many benefits, including federal estate tax savings, creditor protection, and liquidity.

Specifically, counsel can use the split-dollar arrangement to reposition liquid assets to mitigate income and estate tax liabilities. Additionally, the split-dollar arrangement can be structured so that death benefits pass to beneficiaries income and estate tax-free.

Listen as our experienced panel provides guidance for structuring split-dollar arrangements. The panelists will review rules that govern taxability, estate planning benefits, appropriate life insurance policies, structuring the split-dollar agreement, and termination.