An irrevocable life insurance trust (ILIT) is a 100% tax-efficient structure that builds and preserves wealth, while eliminating all taxes legally. In addition to providing a life insurance benefit, an ILIT enables tax-free growth, tax-free distributions to beneficiaries, and tax-free family wealth transfer in complete compliance with U.S. tax law. An ILIT provides asset protection […]

Private placement life insurance (PPLI) allows tax-free investment growth in segregated policy accounts, especially useful for portfolios holding hedge funds or other short-term high-return investments. Because assets in PPLI are in segregated accounts, they are protected against insolvency of the insurance company.  When an irrevocable life insurance trust (ILIT) owns the policy, the policy and […]

Private placement life insurance and deferred variable annuity (DVA) policies in Bermuda, Puerto Rico, Liechtenstein, and other offshore jurisdictions can be designed for full compliance with U.S. tax laws to maximize tax saving and investment growth. Offshore vehicles generally have greater funding and investing flexibility than US-based counterparts. Fees and minimum premium commitments are less […]

Summary: An IRS ruling provided some clarity and reassurance to US taxpayers who want to be beneficiaries of a self-settled, irrevocable, discretionary asset protection trust. In Private Letter Ruling (PLR) 200944002, the IRS ruled that assets in an asset protection trust were not includable in the grantor’s gross estate even though the grantor was a […]