Split-dollar documentation refers to the formal written agreements, plan documents, and supporting records that govern a split-dollar life insurance arrangement between two parties, typically an employer and an executive or a donor and an irrevocable trust. These documents outline ownership of the policy, premium responsibilities, rights to cash value, and division of death benefits. They also specify whether the arrangement follows an economic benefit or loan regime, how interest will be handled, and when the arrangement will be unwound or rolled out. Proper split-dollar documentation is essential to comply with IRS guidance, avoid unintended gift or income tax consequences, and clearly define expectations among all parties. It often includes collateral assignments, endorsement forms, and board resolutions in addition to the main agreement.

Advisors work with attorneys and tax professionals to draft split-dollar documentation when implementing executive benefit plans or funding large policies inside irrevocable life insurance trusts. Carriers and administrators frequently provide sample templates, but these must be customized for each case. During audits, regulators and the IRS may review split-dollar documentation to confirm that economic benefit or loan regime reporting has been followed correctly. Advisors stress the importance of keeping signed agreements, premium invoices, collateral assignments, and annual valuation statements together in a central file. Understanding split-dollar documentation helps advisors ensure that creative life insurance designs are supported by strong legal and tax foundations rather than informal or incomplete paperwork.