Rabbi and Secular Trusts or company-owned life insurance trusts can be an important part of a key executive's incentive compensation program.
- Employees who participate can have an important fringe benefit taxed at a later date while providing security for the promise to provide deferred compensation.
- Income is not realized until the deferred compensation payments are received by the employee.
- Trust assets remain subject to the claims of the employer's general creditors under certain circumstances.
- Christiana Bank & Trust Company's Delaware location, fiduciary experience and professional, capable staff are a resource that employers and their advisors can utilize to implement a successful program.