|
Each document below requires the Adobe Acrobat Reader. (Click
here for more information on the Acrobat Reader.)
Use the "back" command in your browser to
return to this list from the Adobe Acrobat Reader. Please
be patient, each document may take a few minutes to load.
Loan-Based
Split Dollar ("LB-SD")
Employer offsets executive’s loan
interest with a gross-up bonus.
Note: The Loan-Based Split Dollar module
can reflect policy loans and/or withdrawals (for example,
for retirement income for the executive). LB-SD Presentation
#1 does not illustrate such policy activity; however, LB-SD
Presentations #2, #3, and #4 do.
Employer offsets executive’s loan
interest with a gross-up bonus;
In retirement years, policy loans used for loan interest
to employer;
Additional policy loans for retirement income.
Employer offsets executive’s loan
interest with a gross-up bonus;
Policy loan repays employer at retirement;
Additional policy loans for retirement income.
Employer offsets executive’s loan
interest with a gross-up bonus;
Executive repays loan at beginning of year 21;
Employer bonuses the funds for the repayment;
Policy loan offsets the executive’s income tax on
the bonus;
Additional policy loans for retirement income.
Parent loans funds for annual premiums to
the trust;
Trust pays loan interest to the parent using gifts from
the parent.
Parent loans a single sum to the trust;
Trust pays annual premiums from the single sum;
Trust pays loan interest to the parent using gifts from
the parent.
Grandparents loan a single sum to the trust,
calculated to maximize the available annual gift exclusions
(42);
Trust pays annual premiums from the single sum;
Trust pays loan interest to the grandparents using gifts
from the grandparents.
(#3 uses Survivor Universal Life; #4 uses Variable Survivor
Universal Life)
|
