Why Private Split Dollar?
For high-net-worth clients looking to fund a trust-owned policy, Private Split Dollar can be a stable and powerful technique for several reasons:
- It allows a policy to be funded without making a gift
- Economic benefit rates are not impacted when interest rates rise, so a policy can be funded today, then switched to a loan regime when rates change
- Economic benefit costs can be lower than current interest rates, including for younger clients or those considering a survivorship policy
- Levine vs. Commissioner created a road map that emphasizes the importance of the formalities in estate planning and acknowledged using Private Split Dollar as a viable planning tool
Want to learn more about Private Split Dollar?
- Our JH Solutions Private Split Dollar module is an excellent way to highlight the power of this concept and includes insights into how to tailor it for individual clients
- Review our Private Split Dollar guide, which focuses on the mechanics of this popular solution
- Our Planning in Action features a specific case brought to the John Hancock Advanced Markets team