PPLI Offers the Following Advantages
- Adds tax deferral
- Adds income, and estate tax benefits
- Adds dynasty tax planning opportunities
The assets inside a life insurance contract offer the advantage of growing tax-deferred in most jurisdictions throughout the world.1 This applies to PPLI policies as well, and in a properly constructed policy shields the assets from all taxes. In most cases, upon the death of the insured(s) under a contract of insurance, the death benefit is paid out free of tax.2
Whereas planning with just trusts and foundations offers only limited tax planning opportunities, Expanded Worldwide Planning (EWP) offers a powerful Tax Shield. Adding a PPLI policy held by the correct entity in the proper jurisdiction creates an extraordinary dynasty planning opportunity.3
- Bortnick, “Tax Management: Building Wealth, Reducing Taxes,” in The PPLI Solution, Delivering Wealth Accumulation, Tax Efficiency, and Asset Protection Through Private Placement Life Insurance (The PPLI Solution) at 31 (Bloomberg Press, 2005).
- supra note 1.
- “Powerful Private Placement Life Insurance Strategies With Trusts,” Insurancenewsnet.com (March 30, 2016) http://insurancenewsnet.com/oarticle/powerful-private-placement-life-insurance-strategies-with-trusts
by Michael Malloy CLU TEP RFC, @ Advanced Financial Solutions, Inc