This Form is a Supplemental Needs Trust created by a third party. This means that it is the assets of the third party, not those of the beneficiary, that are being used to fund this Trust. This means that the grantor of the Trust may provide that when the Trust terminates, an alternative beneficiary may receive the balance of the remaining trust assets, if any (as opposed to the state Medicaid authorities).

Split Dollar Life Insurance Agreement (With Irrevocable Life Insurance Trust As Policy Owner) And Collateral Assignment By Trustee (11 Pages)

Included herewith are two (2) Forms:

1. A Split Dollar Agreement (With Irrevocable Life Insurance Trust As Policy Owner) and

2. The Collateral Assignment Of The Policy To The Employer By The Trustee

The purpose of the Split Dollar Agreement ("SDA") is to allow an employee to have life insurance premiums paid for his or her benefit by the employer and, upon the death, or other termination, of the employee, to allow the employer to be reimbursed for the premiums paid.

In this Split Dollar Form, the owner of the policy is an irrevocable life insurance trust created by the employee. Thus, the trustee of the trust, as the policy owner, must be a party to the SDA.

This is a form of a “Rabbi Trust”. It is designed to have an employer create a fund for the benefit of an employee that is set aside in a separate trust for the future benefit of the employee. Note, however, that the trust is very clear that the trust funds are available to the general creditors of the employer at all times that the trust funds have not been paid to the employee. The reason for this is tax-motivated.

This document is a form of a Qualified Personal Residence Trust (QPRT). It satisfies the requirements issued by the Internal Revenue Service in Rev. Proc. 2003-42 for a single term holder for the shorter period of a selected term of years or the life of the holder.

This Form provides that if the personal residence is sold or otherwise fails to qualify as a QPRT during the QPRT term, the proceeds of sale, involuntary conversion, etc. are returned to the transferor.

Both the QPRT With Possible Conversion To A GRAT AND the QPRT With Possible Return To Grantor are included in the "2 QPRT Forms Bundle".  Purchase the bundle of both QPRTs and SAVE $39. This Bundle is the first title on the first page under the "Estate Planning" category.

This document is a form of a Qualified Personal Residence Trust (QPRT). It satisfies the requirements issued by the Internal Revenue Service in Rev. Proc. 2003-42 for a single term holder for the shorter period of a selected term of years or the life of the holder.

This Form provides that if the personal residence is sold during the QPRT term, the proceeds continue to be held in a Grantor Retained Annuity Trust (GRAT) to preserve the tax-favored gifting benefits commenced with the QPRT transaction.

Both the QPRT With Possible Conversion To A GRAT AND the QPRT With Possible Return To Grantor are included in the "2 QPRT Forms Bundle".  Purchase the bundle of both QPRTs and SAVE $39. This Bundle is the first title on the first page under the "Estate Planning" category.