Lina Storm, CLU®, ChFC®, MBA

Author Archives

6 Takeaways from Cahill Tax Court Case: Intergenerational Split Dollar

The recent Estate of Cahill tax court case gives us a glimpse into the court’s view of intergeneration split dollar arrangements (GSD). In particular, the court focused on, among other things, the valuation of the loan repayment for estate tax purposes, as well as the appearance of the transaction as a vehicle for below market transfers to family members. Although the tax court did not issue a summary judgement and the case will now move to trial for a decision, the comments of the tax court are telling.


Premium Financing

For many years Premium Financing was used by the Property & Casualty industry to allow employers to finance hefty commercial liability premiums. Fast forward to the last two decades and Premium Financing has evolved to fund a client’s large life insurance needs.

Premium Financing refers to the funding of premiums through a third-party lender, like a bank.

Clients who need a large life insurance policy to create liquidity for estate planning, wealth transfer or business succession may consider establishing a loan for the annual premiums through a commercial lender.  This type of loan is similar to other loans: the arrangement requires approvals from both the bank and the insurance company issuing the policy, a fair market rate of interest is charged, and collateral in the form of the life insurance policy and additional personal assets must be posted.


When Does A Non-Qualified Benefit Plan Make Sense?

Both business owners and executives can benefit from non-qualified benefit plans. When considering which options make the most sense, the questions revolve around:


Top 4 Ways Life Insurance Is Used for Business Planning

Business owners can use life insurance to protect their businesses and provide important benefits to their employees. Without proper planning and funding, many businesses fail to continue to the next generation.

Here are 4 ways life insurance is used in business planning:


Estate Planning: The Cost of Waiting

Following the 2017 Tax Act, many advisors have asked how to respond to clients who say that there is no urgency in planning given the tax changes. To address this lack of urgency, consider the following:

  • the non-tax needs of the family–including liquidity to equalize gifts among heirs,
  • the preference heirs may have to buy each other out of unwanted assets, and
  • the desire to ensure long-term care for a special needs family member.

4 Charts to Help Navigate Planning for Foreign Nationals

Transfer tax planning for high net worth clients can be sophisticated. When the client is a foreign national, planning becomes even more complex due to the myriad of tax rules based on residence, citizenship, type and situs of property, and how the property is being transferred — as a gift during lifetime, or as a bequest at death.

Below are 4 general charts that help navigate through the rules. Treaty agreements between the U.S. and the non-citizen’s home country may alter or replace the general rules discussed herein.


Planning for a Non-Citizen Spouse: Life Insurance to the Rescue

Part of a Series on Planning for Foreign Nationals

Individuals who are residents of the United States but who are not citizens (commonly referred to as “resident aliens“) are subject to the same estate and gift tax rules as U.S. citizens. However, there are two important distinctions to consider when it comes to transfers between spouses who are not both U.S. citizens.


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