Irrevocable Trust and Split Dollar (Illustration)

Combining an Irrevocable Life Insurance Trust with a split dollar plan can be an effective way to have an employer pay all or most of the premium on an employee’s life insurance policy. Split Dollar Plans allow the employer to pay a large portion of premiums. At death, the employer gets a share of the proceeds and the trust gets the balance.

Click on any item below for further explanation of concepts in this illustration.

See Also

How a Life Insurance Trust Works | Irrevocable Life Insurance Trusts | Transferring a Policy to an ILIT | Irrevocable Trust and Executive Bonus (Illustration) | Transfer Policy to Irrevocable Life Insurance Trust (ILIT)