Taking the Mystery Out of Charitable Split Dollar

Duff, Richard W.
December 1998
Journal of Financial Planning;Dec1998, Vol. 11 Issue 6, p32
Academic Journal
This article provides information on the charitable split dollar insurance plan, which is considered to be a long-term partnership established by a policy owner with a charity. The charitable institution, in anticipation of a stream of cash contributions from someone friendly to the program, will quickly pay a grouping of premiums for a life insurance policy. The policy owner, in exchange, provides the charity with two things: an ongoing level share of the death benefit and unearned premium account. The policy owner agrees to fund any premiums not paid by the charity. When the unearned premium account expires, all cash values technically belong to the contract holder. Usually in charitable split dollar plans, this policy owner is someone other than the insured, such as life insurance trust.


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