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Split Dollar & Estate Planning

Split Dollar

Table of Contents

Split Dollar & Estate Planning


Balancing Costs: The Split Dollar Method

Firstly, let’s introduce the concept of Split Dollar or (SD) as an estate planning strategy. (SD) is a financial agreement, typically between an employer and employee, to share the costs and benefits of a life insurance policy. It can also occur between two businesses or even within an estate. The principal attraction of (SD) is the potential for a high return on investment with reduced cost and risk.


Cost and Benefit Sharing

Expanding on the details, (SD) involves sharing the premiums, cash value, and death benefit of a life insurance policy between two parties. Each party’s share is dictated by the terms of the agreement. The arrangement offers flexibility, making it attractive for estate planning and business applications. It can be an excellent tool for preserving family wealth while mitigating life insurance costs.


Split Dollar in Practice with Hotaling Insurance Services

Focusing on our role, at Hotaling Insurance Services, we provide personalized Split Dollar strategies. We tailor these strategies to your specific estate planning or business objectives. Our priority is to guide you through the complexity of the (SD) method, ensuring it aligns with your financial goals.


Estate Planning Strategy

Emphasizing the benefits, implementing a (SD) arrangement in estate planning can help preserve family wealth. It can also provide liquidity for estate taxes and other expenses. It offers financial flexibility, a desirable attribute when planning for the future of your estate.


Ready to Implement (SD) Strategies?

In conclusion, (SD) can be an effective and efficient strategy in your estate planning toolkit. It offers a unique balance of risk, cost, and benefit, contributing to a comprehensive and robust estate plan. If you are ready to explore how Split Dollar strategies can benefit your estate planning objectives, we invite you to contact us to know more today!


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