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Income Protection

Key Employee Retention & Retirement

Bonus Bonus - LLC Member Bonus - S Owner Bonus (Tax Exempt) Death Benefit Only Death Benefit Only (Tax Exempt) Deferred Comp - 457(b) and 457(f) Deferred Comp - Defined Benefit Deferred Comp - Defined Contribution Deferred Comp - Incentive Bonus Deferred Comp - Select Reward Deferred Comp - Select Reward (Tax Exempt) Deferred Comp - SERP Endorsement Split Dollar Loan Split Dollar

Legacy & Estate Planning

Charitable Giving Gifting Strategies Inheritance Equalization Private Split Dollar Special Needs Trust Solutions Estate Tax Reports

Private Split Dollar

A private split dollar arrangement is typically an agreement between an individual and an irrevocable life insurance trust, designed to provide estate tax protection while minimizing the value of gifts to fund the trust.

This arrangement is ideal for people with an estate tax problem who are reluctant to enter into a traditional irrevocable life insurance trust (ILIT) due to its apparent lack of flexibility.

Target Market

People who want to provide a death benefit while preserving cash values for their estate
Situations where it's necessary to minimize use of the gift tax annual exclusion, particularly where insurance for estate tax purposes is owned by another family member (child)
Grandparents who want to fund their generation-skipping trust (GST) with amounts greater than their GST exemption with minimal or no GST, estate, or gift tax consequences

Consumer Materials

Private Switch Dollar Employer Overview (BB12685)
Discusses starting a private economic benefit plan and then later switching to a private loan split dollar plan in order to minimize the size of the gifts over the life of the insured(s).
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Private Split Dollar Sample Proposal (BZ778)
A customized proposal can be created by the Advanced Solutions Case Design team by using the Request for Proposal. It will be customized for your client with appropriate cover information, financial model, and illustration.
View Sample Proposal (PDF) (Temporarily unavailable)

Sample agreements:

Private Split Dollar (Single Life) w/ Irrevocable Trust Agreement (BB10901)
View (DOC)
Private Split Dollar (Survivorship) w/ Irrevocable Trust Agreement (BB10902)
View (DOC)
Split Dollar Restrictive Collateral Assignment Form (DD9215)
View (DOC)

Producer Materials

Advanced Markets Information
Technical material for applied knowledge on a specific topic.
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Funding and Financing

For more information on our products, view life insurance products.

ILIT Financing Strategies Comparison (Single insured) (BB11629)

Compares the features of six financing strategies for single insured life insurance owned by an irrevocable life insurance trust. Includes content from BB11630.

View (PDF)

Important Information

For financial professional use only.

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