Split Dollar Planning: Switch Dollar – a hybrid planning technique that works after the issuance of the final regulations
The final split dollar regulations issued on September 11, 2003 effectively put an end to equity collateral assignment split dollar by requiring that such arrangements be treated as loans subject to Section 7872 of the Code. Prior to the final split dollar regulations, employers used equity split dollar as a tax efficient means of providing death benefit and supplemental retirement income to a key employee. In the private split dollar context, donors used equity split dollar as a gift-tax efficient means for a client to pay premiums on a policy held in an ILIT. Despite the final regulations, however, employers and donors can still take advantage of a new hybrid form of split dollar to meet these planning objectives. This new tool is called Switch Dollar. Click here to read more.

 

Upcoming Calls and Events

Teleconference: Tuesdays with Jerry
Date: April 3, 2007 - 2:00 pm EST
Register Now or call Pam Tucciarone at
800.722.1600, ext. 6446

Teleconference: Tuesdays with Jerry
Date: May 8, 2007 - 2:00 pm EST
Register Now or call Pam Tucciarone at
800.722.1600, ext. 6446

 

GREENBERG TRAURIG ALERTS

Special Report (March 2007)
- IRS Confirms Treatment of Life Insurance Policy Transfers Involving Grantor Trust for Transfer for Value Purposes

Special Report (March 2007)
- Reportable Transactions: Changes to Reporting and Disclosure Requirements
 

Call The Potomac Group at 800.722.1600, ext. 6446 for more information.