Our customized split-dollar program explains and analyzes the complex new tax rules applicable to split-dollar life insurance under IRS Notice 2002-8 and the recently-issued Split-Dollar Final Regulations. Applying our proprietary computer modeling techniques, we quantify income, gift, estate, and generation-skipping tax alternatives for an old or new plan, including the following scenarios:


  • For old split-dollar plans (pre-Jan. 28, 2002 plans), determining viable alternatives, such as terminating the plan or switching to a loan before, or after, Jan.1, 2004, the critical IRS action deadline under Notice 2002-8.
  • Alternatively, for these old plans, continuing in split-dollar and analyzing the resulting tax consequences.
  • For new split-dollar plans (post-Sept. 17, 2003 Final Regs. plans), applying creative life insurance purchase techniques to minimize tax costs, such as the new “Collateral Endorsement Switch-Dollar™” plan.
  • For both old and new plans, formulating an exit-strategy to avoid unintended future income, gift, estate, and generation-skipping tax consequences.
  • Illustrating and comparing the complicated new annual term cost and loan interest rules.
  • Structuring (or restructuring) the split-dollar policy to achieve plan expectations both during life and at death.
  • Combining split-dollar with outside premium financing, if desired.
  • For a public corporation split-dollar plan subject to the anti-executive loan provisions of the Sarbanes-Oxley Act, restructuring the plan to preserve favorable tax benefits by:
      • Freezing the employer's policy interest, or acquisition of the employer's interest by the insured, a related entity, or the insured's life insurance trust;
      • Facilitating such an acquisition, and future premium payments, through loans from specialized lenders;
      • Coordinating the tax aspects of the transaction with the plan restructuring required by Sarbanes-Oxley.

•  Assisting legal counsel with proper plan documentation, if requested.


We do not express any opinion on the investment, legal, or tax consequences of this plan, and you are responsible for consulting your own investment advisors, legal counsel, and accountants for all such advice.

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The Weinberg Group Inc.

4025 South Oneida Street, Denver, Colorado 80237
Phone: 303.692.9599 — Fax: 303.753.9580

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