Yield Enhancement

30 years is too long
to wait.

Shorten existing CASD and split dollar duration from 30–40 years to a fixed 10–20-year exit. Eliminate imputed income. Defined exit on your schedule.

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Your split dollar loans close when the executive dies. Ours close on a date you choose.

30–40yrTraditional CASD duration

10–20yrLifeNotes fixed duration

0%Imputed income after transfer

The Problem

Split dollar was designed for the executive. Not for you.

Traditional collateral assignment split dollar (CASD) leaves credit unions holding a 0–2% AFR-based loan for 30–40 years — the structural flaw LifeNotes' fixed-maturity certificates are designed to fix. The executive gets a valuable death benefit; the credit union gets a low-yield loan that only closes when the executive dies.

Meanwhile, the credit union carries the balance sheet exposure, reports imputed income as taxable compensation to the executive, and cannot redeploy the capital. The plan that was supposed to be a retention tool becomes a financial burden.

Traditional CASD / Split Dollar

CU Return0–2% (AFR-based)

Duration30–40 years

Exit TriggerExecutive death

Imputed IncomeOngoing tax liability

Executive RiskBenefit depends on future board

LifeNotes CASD Terms

Credit union return by duration

10-Year Exit0%

Fastest path off the books. Full principal recovery. No ongoing imputed income.

15-Year Exit1%

Balanced duration. CU earns 1% annual return. Imputed income eliminated at transfer.

20-Year Exit2%

Maximum yield. CU earns 2% annually. Defined exit still 10–20 years sooner than traditional CASD.

The LifeNotes™ Solution

A defined exit. A cleaner balance sheet.

Contribute your CASD promissory notes to the LifeNotes Trust and receive a fixed-duration investor certificate. The split dollar loan closes on a defined schedule — 10, 15, or 20 years — not when the executive dies.

The credit union earns 0% (10-year), 1% (15-year), or 2% (20-year) on the certificate. Imputed income is eliminated after the transfer. The executive's benefit is secured by the trust — not dependent on a future board vote.

✓Loan exits your books in 10, 15, or 20 years — your choice
✓Eliminates imputed income tax burden for the executive
✓Executive benefit secured by the trust, not a future board
✓Risk pooled across 600+ policies and 22 carriers
✓Pro-rata death benefit distributions throughout the term

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Impact

What changes when you move split dollar into the trust?

Duration Compression

Traditional CASD loans sit on the books for 30–40 years. In the LifeNotes Trust, your exit is fixed at 10, 15, or 20 years. The loan closes on a date, not a death.

Imputed Income Elimination

The transfer to the trust eliminates the ongoing imputed income obligation. The executive no longer recognizes taxable income from the economic benefit of the coverage.

Institutional Diversification

Your single-policy exposure is replaced by a pooled position across 600+ policies and 22 carriers. Average COMDEX: 95. Concentration risk is eliminated.

Executive Benefit Security

The executive's retirement benefit is secured by the trust — not dependent on a future board honoring a commitment decades later. Risk transfers from the executive to the trust in exchange for a guarantee.

Balance Sheet Clarity

A fixed-duration certificate with a known maturity date is cleaner to model, report, and explain to examiners than an open-ended split dollar loan tied to executive mortality.

The Process

From open-ended loan to defined exit

Split Dollar Review

We review your existing CASD and split dollar positions — loan balances, policy details, executive ages, and current imputed income. The analysis maps your exposure and models the improvement.

Contribute to the Trust

Transfer your CASD promissory notes into the LifeNotes Trust. You choose a 10, 15, or 20-year certificate term. The corresponding CU return is 0%, 1%, or 2%.

Exit on Schedule

The credit union's certificate matures on schedule. Pro-rata death benefit distributions flow throughout the term. Imputed income stops at transfer. The executive's benefit is secured by the trust.

Also Available

Cash Investment

Cash Investment is the third LifeNotes pathway alongside CUOLI and CASD contribution: credit unions deploy cash directly into the trust, joining 100+ credit unions and $550M in trust assets — without contributing existing policies or split dollar positions.

Cash investment certificates offer an introductory rate plus SOFR + a negotiated spread. Terms, rates, and minimums are structured on a per-deal basis. This is not a pooled product — each cash investment is individually negotiated.