Split-Dollar Arrangements

The Ultimate Consolidation

Split dollar is an arrangement where two parties share the death benefits, cash values, and premium costs of one life insurance policy. The two parties in a traditional (or classical) split dollar arrangement are employer and employee, or corporation and shareholder. The two parties in a private split dollar (or family split dollar) arrangement are typically relatives, such as husband and wife, or father and son.

Traditional split dollar programs are designed to bring a party (usually an employee) who needs the life insurance proceeds together with a party (usually an employer) who has the funds to pay the premiums on the life insurance policy. Private split dollar arrangements are designed for a different purpose. A source for premium dollars is not needed. Instead, the main objective of private split dollar arrangements is to maximize certain tax and economic benefits. Click the link below to contact our team and learn more about the process!