Trusts and Estates > Insurance > SPLIT-DOLLAR OPPORTUNITIES

May 1, 2006 12:00 PM

SPLIT-DOLLAR OPPORTUNITIES

By Richard L. Harris, managing member, BPN Montaigne LLC, Clifton, NJ

Although the Treasury Department and the Internal Revenue Service have significantly diminished its income tax advantages, split-dollar insurance can still be a valuable estate-planning tool. The IRS's final regulations1 created the ability to use coordinated strategies to fund life insurance premiums without making any taxable gifts or, in some cases, triggering the generation-skipping transfer (GST) tax. Artful use of these strategies can result in substantial savings in the tax cost of buying new policies. They also can help remedy situations in which clients have existing split-dollar arrangements that need significant gift tax dollars to fix.

Be warned, though, structuring these arrangements under the new rules calls for careful planning. And these transactions need to be fully modeled under as many scenarios as are appropriate.

Sign in to
view the full article



Remember Me

* Forgot Username/Password?

* Magazine Subscribers Get Your Login

Not a subscriber?

  • Subscribe & Save

    Get immediate access to Trust & Estates online

  • Subscriber Benefits

    Learn more about Trust & Estates magazine, online article access and our free enewsletters.

Topics of Interest

Estate Tax Donor Advised Funds
GSTs Family Offices
Private Foundations Life Insurance
2010 Tax Act News Industry Trends Surveys

E-Newsletter Signup

Poll

Topics of Interest

Estate Tax Donor Advised Funds
GSTs Family Offices
Private Foundations Life Insurance
2010 Tax Act News Industry Trends Surveys

E-Newsletter Signup


T&E eNewsletters

Wealth Watch

Wealth Watch is a free e-newsletter delivered twice a month with expert advice on wealth management from Trusts & Estates.

Latest from Wealth Watch

View more from Wealth Watch.

Tech. Review

Technology Review is a free monthly e-newsletter from Trusts & Estates and nationally renowned expert Donald H. Kelley. It is geared to keeping estate planning lawyers current on the latest tech news they can use.

Latest from Tech. Review

View More from Technology Review.

Philanthropy Tax Guide

Each month, Conrad Teitell reports on and analyzes as important tax development governing charitable contributions, including how to maximize the benefits and avoid the pitfalls.

Latest from Conrad Teitell

View More from Conrad Teitell.

2011 Trust Glossary

Click here to download the 2011 Trust Glossary

50 Years Ago This Month

50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

Click here to view the most up to date guide (September 2011)

Press Releases

Browse Back Issues

What's new on
WealthManagement.com


Most Popular Stories

Press Releases

Advising the Wealthy: It's a Whole New Game

Charlie Ratner talks with estate-planning expert Lou Harrison, investment guru Michael Lewitt and retirement benefits specialist Mike Jones. Register for this timely podcast......

More Press Releases...

Bookstore / Library

Follow us on Twitter