Split Dollar arrangements offer an array of attractive planning opportunities for companies to provide meaningful benefits to key executives. In this video, Principal John Gagnon, answers the question “What is Split Dollar Insurance?” and discusses the components, process and reasons why companies choose to implement a Split Dollar arrangement.
How will BOLI react in a rising interest rate environment? At the start of 2021, banks faced several challenging economic conditions including declining net interest margins, lower asset yields, and excess liquidity.
Offering retirement benefit plans using life insurance has long been an important element of an employer’s ability to attract, retain, and reward their key management employees. While the 457(f) Retirement Plan and Collateral Assignment Split-Dollar (CASD) Plan both have the potential to provide meaningful benefits to employees, important tax, financial, and operational differences exist. The following tables will compare the plans and their impact from a participant and company perspective.
“We reject a lax view of fiduciary obligations and insist upon their scrupulous observance. But to say that a man is a fiduciary only begins [the] analysis; it gives direction to further inquiry. To whom is he a fiduciary? What obligations does he owe as a fiduciary? In what respect has he failed to discharge these obligations? And, what are the consequences of his deviation from duty?” – Hon F. Frankfurter, SEC vs. Chenery (1943).