We are pleased to announce that the following article by Robert W. Finnegan, J.D., CLU®, was published in the August 2017 issue of Estate Planning magazine.
Understand Split-Dollar and Generational Split-Dollar Plans
Split-dollar life insurance arrangements meet various wealth transfer needs of high net worth families.
Economic benefit and loan regime split dollar plans remain among the most powerful wealth transfer vehicles available. With the recent favorable Estate of Morrissette case, generational split dollar (GSD or inter-generational split dollar) has burst upon the scene. This planning strategy remains extremely attractive in spite of aggressive valuation discounts that have made these plans a favorite target of the IRS. This article reviews the economic benefit and loan regime split dollar rules, evaluates each of those regimes in the GSD context and proposes a prudent approach assuming no or low discounts in designing and funding GSD plans. View article
Bob Finnegan is the Senior Vice President, Advanced Planning Attorney for Highland Capital Brokerage and specializes in advanced planning for high net worth and ultra-high net worth clients. Bob can be reached at 518.424.8928 or firstname.lastname@example.org.