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Knowing What You’re Doing: Troubleshooting Common Oversights in Split-Dollar Plans

Easily over-looked trouble spots in split-dollar life insurance arrangements and suggestions for how to avoid them include: (1) confirming the availability of term insurance rates used to measure annual economic benefits; (2) filing non-recourse representations for split-dollar loans; (3) using properly drafted collateral assignments for policies subject to split-dollar loans; (4) determining whether an arrangement is grandfathered before making changes; and (5) checking, before issuance, whether the policy intended for purchase under the arrangement may be subject to tax as an employer-owned life insurance contract.

Learn more about the easily over-looked trouble spots in split-dollar life insurance arrangements and how to avoid them in the new Washington Report.

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