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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. North American nor its agents give tax advice.

Neither North American, 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 North American Company for Life and Health Insurance® and as such North American is unable to enforce directly any restrictions on the policy that are part of the REBA agreement.

Under an endorsement split dollar arrangement, your client enters into an agreement with their employer. North American is not a party to this agreement and North American'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. North American Company for Life and Health Insurance® is not a party to this agreement and North American'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 North American.