SPLIT-DOLLAR OPPORTUNITIES

Although the Treasury Department and the Internal Revenue Service have significantly diminished its income tax advantages, split-dollar insurance can still be a valuable estate-planning tool. The IRS's final regulations1 created the ability to use coordinated strategies to fund life insurance premiums without making any taxable gifts or, in some cases, triggering the generation-skipping transfer (GST)

Although the Treasury Department and the Internal Revenue Service have significantly diminished its income tax advantages, split-dollar insurance can still be a valuable estate-planning tool. The IRS's final regulations1 created the ability to use coordinated strategies to fund life insurance premiums without making any taxable gifts or, in some cases, triggering the generation-skipping transfer (GST) tax. Artful use of these strategies can result in substantial savings in the tax

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