Appraisal Economics has determined the fair market value of a split-dollar receivable in connection with a second-to-die joint life insurance policy.  The trustees of the policy entered into a split-dollar agreement with the beneficiary of their life insurance policy.  The policy was funded with a single premium payment, and the Split-Dollar Agreement would pay the beneficiary upon the realization of the policy (the “Receivable”).  The first step in valuing the Receivable was to determine the appropriate discount rate to use to calculate the present value.  Next, we considered the lack of an active trading market for such an instrument.  Our concluded value was used for the purpose of the trustee’s gift and estate tax planning.