Twenty years ago, a technique known as split-dollar was an often-used way to pay the premium for needed life insurance coverage. Then, between 2001 and 2003, the IRS published rulings and regulations that effectively ended many commonly-used split-dollar strategies.
On April 13, the Tax Court published a decision with regard to certain split-dollar details in the case of Estate of Clara M. Morrissette et al v. Commissioner. In its ruling, the court took the side of a family that had implemented private split-dollar plans for the purpose of facilitating estate planning.
Here’s what the family had done: To continue reading, click here.