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Irrevocable Life Insurance Trust (ILIT) and Spousal Lifetime Access Trust (SLAT) should be drafted only by an attorney familiar with such matters. Neither Midland National nor its agents give tax advice. Neither Midland National, nor any of its agents, employees or representatives are authorized to give tax or legal advice. Advise customers to contact their own independent qualified tax or legal advisor before commencing any charitable giving plan.

The terms and conditions of the REBA are not part of the policy issued by Midland National® Life Insurance and as such Midland National is unable to enforce directly any restrictions on the policy that are part of the REBA agreement.

AUC only provides general tax and technical information for the information of Midland National employees and producers. AUC is not providing legal or tax advice on which a prospective or current customer can rely nor should AUC materials be used for such purposes. If legal or tax advice is needed by prospective or current customers, an independent legal counsel or tax advisor should be sought. AUC materials are not for use with, or disclosure to, any Midland National prospective or current insurance customers. Midland National and its agents do not give legal or tax advice.

Under an endorsement split dollar arrangement, your client enters into an agreement with their employer. Midland National is not a party to this agreement and Midland National’s only obligation is to administer the policy it issues consistent with the policy’s terms and conditions.

Under an endorsement split dollar arrangement, the value of the life insurance afforded the employee is taxable to the employee. The employer should provide the employee with tax reporting based on requirements specified in the tax code. The parties to the endorsement split dollar arrangement should seek their own independent legal and tax advice as to whether and how to enter into an endorsement split dollar arrangement based on the employer’s and employee’s unique circumstances.

Under a split dollar agreement, classified as a welfare benefit plan, the employee must belong to a select group of management, which includes quantitative and qualitative elements. To meet the quantitative standard, plans should be limited to the top 15% of the workforce. To meet the qualitative test, a significant disparity should exist between the average compensation of the top-hat group and the average compensation of all other employees.

Under a loan split dollar agreement, the employee enters into an agreement with the employer. Midland National® Life Insurance Company is not a party to this agreement and Midland National’s only obligation is to administer the policy it issues. (consistent with the policy’s terms and conditions).

Marshall & Stevens is a third-party company and is not affiliated with Midland National.