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Today's Split DollarToday's Split Dollar

The final split-dollar regulations that were effective as of Sept. 17, 2003 (T.D. 9092) became the operative guidance for arrangements that either were implemented after this date or that existed before Sept. 17, 2003 but were materially modified thereafter.1 Despite the complexity of these regulations, clients still can use split dollar to efficiently finance the premiums for substantial amounts

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Lawrence Brody, Bryan Caveand 1 more

May 1, 2007

28 Min Read
Wealth Management logo in a gray background | Wealth Management

Lawrence Brody, partner, Bryan Cave LLP, St. Louis, and Charles L. Ratner, national director of p

The final split-dollar regulations that were effective as of Sept. 17, 2003 (T.D. 9092) became the operative guidance for arrangements that either were implemented after this date or that existed before Sept. 17, 2003 but were materially modified thereafter.1 Despite the complexity of these regulations, clients still can use split dollar to efficiently finance the premiums for substantial amounts of life insurance.

In our scenario, we will assume the client will use an irrevocable life insurance trust (ILIT) to own the policy to keep the proceeds of the policy out of his estate. We also will assume that the client is the majority owner and emp...

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About the Authors

Lawrence Brody

Senior Counsel, Harrison & Held, LLP

Lawrence Brody retired as an Adjunct Professor at Washington University School of Law, after fifty years of teaching Estate Planning and Drafting.  He is a visiting Adjunct Professor at the University of Miami Law School, teaching a course on Life Insurance.  Mr. Brody is the author or co-author of numerous articles and books on the use of life insurance in estate and employee benefit planning, including two BNA Tax Management Portfolios, two books for the National Underwriter Company, and a number of volumes in the ABA Insurance Counselor Series.

Mr. Brody is a frequent presenter for ALI-CLE estate planning programs, Society of Financial Professionals programs, major life insurance industry programs (including the MDRT, LIMRA, the Top of the Table, AALU and the International Forum), the Heckerling Institute, the Notre Dame Estate Planning Conference, the Southern Federal Tax Institute, the NYU Tax Institute, the NAEPC Annual Meeting, and regional and annual ACTEC conferences.

Mr. Brody is a member of The American College of Trust and Estate Counsel (ACTEC), an emeritus member of the Advisory Committee for the Philip E. Heckerling Institute on Estate Planning (University of Miami School of Law), and a member of the Editorial Board of the Society of Financial Service Professionals CLU Journal.   Mr. Brody received the designation of Accredited Estate Planner by the National Association of Estate Planners and Councils and was one of ten individuals awarded its Distinguished Accredited Estate Planner designation in the initial class (2004).  He has been named in the Private Wealth Law Section of Chambers High Net Worth Guide. Mr. Brody was named a Distinguished Law Alumni by Washington University School of Law in 2012.

Charles L. Ratner

Charles L. Ratner is a commentator on life insurance and estate planning based in Cleveland, Ohio.