Shared Ownership has been around for several decades but recent changes in taxes and product selection have impacted the use of this strategy. Tax rules relating to the allocation of Adjusted Cost Basis (ACB) at the policy level impact the Capital Dividend Account (CDA) for a corporate shared ownership participant. The use of whole life policies rather than universal life policies creates unique valuation challenges. The use of shared beneficiary strategies is becoming more popular as a simplified alternative. Is there still a place for shared ownership in today’s marketplace? Join our panel of experts to get the answer to this question.

We have a life company tax and estate expert to talk about the strategy, tax issues, funding implications, administration, best practices, and when the “Shared Beneficiary” strategy may be a more appropriate solution. An experienced lawyer familiar with drafting the third party shared ownership arrangements will talk about the various provisions in such agreements, traps to avoid, and best practices from a legal perspective. Our valuation professional will talk about how policy values can be logically split and unique challenges product selection can introduce. This comprehensive review is a must for anyone interested in using this strategy post 2016.

Technical; Intermediate

This workshop is organized by the Associates Technical Education Sub-committee.