PPLI for International Entrepreneurs
International tax planning is best done before fortunes are made. Rarely does this occur. Our firm is fortunate to have a case where Expanded Worldwide Planning (EWP) is benefiting one such person. By consolidating his worldwide holdings, which are in the startup phase, inside a properly constructed Private Placement Life Insurance policy (PPLI), we are securing these benefits for him:
- All assets inside the PPLI policy receive tax deferral, not only investments, but business income too.
- The assets pass tax-free to the beneficiaries named in the PPLI policy. In a properly structured policy one creates a tax-free environment for these assets. Assets can be located anywhere in the world.
- Because life insurance is used, FATCA and CRS reporting is greatly simplified, and in some cases, is eliminated.
- Families receive enhanced privacy, because the insurance company becomes the beneficial owner of the assets inside the PPLI policy.
- The EWP structure provides excellent asset protection.
- The EWP structure is low cost with fees averaging 1% of assets.
- The EWP structure is fully compliant with the tax authorities of all tax jurisdictions.
- Should an untimely death of the wealth creator occur, his family is protected with a tax-free PPLI death benefit.
Our client has businesses in natural resources, sports, gaming, trading, content management, and investments. His enterprises are in the U.S., Europe, and Africa. He is a U.S. Green card holder with residence status in the U.K., and travels with a passport from a third country. His startup businesses only generate $2-3MU.S. annually with outstanding potential to grow to $5-10MU.S. in just a few years. He is a perfect candidate for EWP planning, and coming to us at the most opportune time.
When you work in a field you sometimes take things for granted that are really quite extraordinary. This is the case here. I was having lunch with a friend a few days ago, and told him what our firm was doing for this client. My friend was astonished and said, “This is a perfect fit.”
If you know additional “perfect fits” please let us know, and we can accomplish the same for them. Thank you for your continued trust and support.
by Michael Malloy CLU TEP RFC, @ Advanced Financial Solutions, Inc
