NU Online News Service, Sept. 25, 2003, 12:15 p.m. EDT – Prudential Financial Inc., Newark, N.J., has developed a program to explain how it wants financial advisors to respond to the new federal split-dollar life insurance regulations.
The Internal Revenue Service regulations could expose some users of split-dollar arrangements to higher tax bills.
But “sales professionals need to be mindful when handling existing plans so that they do not disturb arrangements that retain the more favorable tax treatment,” Terri Getman, a Prudential vice president, says in a statement about the ruling.
Prudential has responded to the IRS ruling by putting together a package of tax and legislative updates, consumer presentations, and answers to frequently asked questions.
Prudential also is organizing conference calls on the subject for financial advisors and offering advisors one-on-one discussions with members of the company’s advanced marketing staff.