Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6839471336256016384
#Tax #Strategy For Top 0.1% #PPLI #Private #Placement #Life #Insurance: ‘entirely legal, easy to exploit, and politically very hard to close.’: https://lnkd.in/esATA-pH
#Wealth #Assets #Management For the Top 0.1%:
#PPLI is a popular #tax #strategy among the very #rich for shielding fortunes from #taxes typically used by the top 0.1%. A little-noticed change in U.S. #insurance #law at the end of 2020 makes it even powerful, while increasing provider competition among #insurance #carriers and advisory firms gives #rich #investors more flexibility, lower costs and a wider choice of products on PPLI platforms. As long as# assets are held in a PPLI policy, they escape #taxes. When a #policyholder dies, heirs inherit the PPLI’s contents #tax-#free.
“PPLI is a massive #loophole — entirely legal, easy to exploit, and politically very hard to close.” While more and more assets are flowing into the PPLI strategy, it remains a slim slice of the #trillions of #dollars held in portfolios of the #richest #Americans.
IN-DEPTH: #PPLI #PrivatePlacement #LifeInsurance: https://lnkd.in/eEJqBEAe :
#PPLI #Videos: https://lnkd.in/eKMvimTK
#PPLI #Research #Papers: https://lnkd.in/eKbSzZdu
#Drawbacks of #PPLI. Whether a PPLI policy qualifies as life insurance — an important distinction because that’s what gives these accounts their tax benefits – is determined based upon strict and very complicated rules. If not funded properly over time, the policies can fail. Once assets are inside a PPLI, they can be borrowed against or rolled into another insurance product, but can’t be taken out without a big tax bill. Policyholders give up day-to-day control of their PPLI’s investment choices and the portfolio needs to be diversified in particular ways consistent with IRS rules.
Despite the hassles, qualifying as life insurance comes with unique perks. “Death benefits, paid when an insured person passes away, avoid all taxes, and gains on investments held within an insurance policy build up tax-free. The tool can also be combined with other loopholes: #FamilyOffices, for example, can buy PPLI policies inside #DynastyTrusts, which are vehicles that let multiple generations of wealthy #heirs avoid the #estate #tax.”
It’s far more common for investors to devote at least $5 million to the strategy to make the administrative and legal startup costs worthwhile with bare minimum of about $2 million to start a PPLI policy. “Withdrawing money from a PPLI while you’re still alive is taxable, so you should only deploy money that you’re sure you’ll never need.”
#SiliconValley #WallStreet #Pentagon #Digital #Pioneer Post-Doc #MIT #Princeton Industry Expert Leading the #FutureOfFinance #Technology #Risk: https://lnkd.in/esk8PEp :
Top Digital CEOs-CxOs Network: Global Risk Management Network LLC: We Create the Digital Future™: AI-ML-Cyber-Crypto-Quantum-Risk-Computing: MIT-Princeton AI-FinTech-Quant-Cyber-Crypto-Quantum SME: We Create the Digital Future™: https://lnkd.in/esk8PEp
