A split-dollar arrangement is a strategy in which a life insurance policy's premium, cash
values, and/or death benefits are split between two parties (owner and non-owner). It
is not a type of life insurance or a reason for buying life insurance; rather, it is a method
of financing the purchase of life insurance. Split-dollar is generally most appropriate
when one party (the company) has the cash to pay the premiums for life insurance
and the other party (the employee) has the need for life insurance. Depending upon
the method of split dollar used, the policy owner may be the employer, the insured/
employee, and the insured's trust or a third party.
With the collateral assignment split-dollar arrangement, the employee or the
employee's trust is designated the owner of the policy. The employee's spouse, other
family member, or the trust is named beneficiary of the policy. The employer's premium
payments are secured by a collateral assignment on the policy. As in the endorsement
method, the rights and duties of the two parties are spelled out in a split-dollar agreement.
Typically, collateral assignment arrangements are used for two reasons:
1. First, it is generally easier to keep the death benefit out of the estate of a controlling shareholder.
2. Second, the collateral assignment method makes it somewhat easier for the employee to take over the policy unencumbered.
Since the employee owns the policy from the outset, it is not necessary to transfer ownership from the corporation to the employee, though the collateral assignment would be released when the split dollar is terminated and taxation would result.
Plano Texas Split-Dollar Agreement - Non-Equity Collateral Assignment Arrangement - Economic Benefit Approach-Minority Owner orSplit-Dollar Agreement -- Non-Equity Collateral Assignment Arrangement - Economic Benefit Approach - Minority Owner or Key Executive Owned
Category:
State:
Multi-State
City:
Plano
Control #:
US-0900BG
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Word;
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In a recent SmartAsset study, Plano ranked #9 for the wealthiest middle class. The median salary for a Plano resident is $95,002. In a SmartAsset study of the median household income in America's largest 100 cities, Plano ranked #9 for the most wealthy middle class.
Plano, considered the ?Balloon Capital of Texas,? hosts a popular hot-air balloon festival each September. Inc. 1873.
In 1994, the city was recognized as an All-America City. By 2000, the population grew to 222,030, making it one of the largest suburbs of Dallas. Plano is surrounded by other municipalities and therefore cannot expand in area, and there is little undeveloped land remaining within the city limits.
Quality medical care facilities, superior educational opportunities, and excellent recreational and cultural amenities contribute to the quality of life for Plano's citizens.
Plano Demographics White: 55.55% Asian: 22.68% Two or more races: 9.2% Black or African American: 9.02%
Plano is the headquarters of Frito-Lay, a division of Pepsico. Heritage Farmstead Museum occupies a former sheep ranch. Plano, considered the ?Balloon Capital of Texas,? hosts a popular hot-air balloon festival each September.
Plano (/?ple?no?/ PLAY-noh) is a city in the U.S. state of Texas, where it is the largest city in Collin County. Plano is also one of the principal cities of the Dallas-Fort Worth metropolitan area.
The median property value in Plano, TX was $358,100 in 2021, which is 1.46 times larger than the national average of $244,900. Between 2020 and 2021 the median property value increased from $341,800 to $358,100, a 4.77% increase.
