Structuring Split-Dollar Life Insurance Arrangements After Morrissette: Leveraging the Economic Benefit Rule
Recording of a 90-minute CLE/CPE webinar with Q&A
This CLE/CPE course will provide estate planners and advisers with a thorough and practical guide to the use of split-dollar life insurance arrangements in the aftermath of the landmark U.S. Tax Court holding in the Morrissette case. The panel will offer specific guidance on drafting split-dollar agreements (SDAs) in light of the court’s rejection of the Service’s challenge, and will give practitioners useful tools to structure the arrangements to conform with the favorable economic benefit doctrine.
- Benefits and complexities of the SDA
- Gift tax leverage
- Estate tax leverage
- Annual administration
- Income tax impact of Morrissette; using economic benefit regime to value premium payments
- Appropriate life insurance policies
- Questions regarding the valuation of receivables under an SDA
- Structuring the SDA
The panel will discuss these and other important topics:
- What is the significance of the Tax Court’s holding in Morrissette that the economic benefit regime of Treas. Reg. 1.61-22 is applicable in valuing the purchase of the policy premiums.
- How to structure an SDA so it avoids the more restrictive valuation rules found in IRS Notice 2002-59.
- What traps to avoid in the valuation of receivables arising from purchase of the premiums in structuring an SDA.
- Under what client circumstances would the use of an SDA be most appropriate.
Kelley C. Miller
Ms. Miller's practice areas include cloud computing, complex federal tax controversies, state and federal... | Read More
Ms. Miller's practice areas include cloud computing, complex federal tax controversies, state and federal tax issues involving closely held entities, state tax planning and litigation and tax planning issues involving E-Commerce, and state nexus. She presents on cloud computing, particularly negotiating SaaS agreements. She also has written and spoken widely on numerous federal and state tax topics for clients representing a broad spectrum of industries, including exempt organizations.Close
Richard Harris, CLU, AEP
Richard L. Harris
Mr. Harris, CLU AEP TEP, is a life insurance consultant and expert witness who has been in the life insurance business... | Read More
Mr. Harris, CLU AEP TEP, is a life insurance consultant and expert witness who has been in the life insurance business since 1970. He is Chair of the Insurance Committee, Trusts & Estates; Professional Expert, WR Newswire An AALU Washington Report; Contributor, Leimberg Information Systems Inc. email Newsletters; Member of Committee on Insurance and Financial Planning, American Bar Association, Real Property Trusts & Estates Section. He has authored and co-authored many articles that have appeared in: Trusts & Estates, Estate Planning, Steve Leimberg’s Newsletters, Journal of Wealth Management, e Report of American Bar Association Real Property Trust & Estate Law Section, Wealth Strategies Journal, Journal of Practical Estate Planning, WR Newswire, an AALU Washington Report, The CPA Journal; and he has co-authored (with Russ Alan Prince) the book, Advanced Planning with the Ultra-Affluent: A Framework for Professional Advisors published by Institutional Investor.Close