Bridgeford Trust Company is participating in an upcoming webinar – Private Placement Life Insurance: Avoiding Income and Transfer Tax for High-Net-Worth Taxpayers – scheduled for Thursday, May 12, 2022, from 1:00pm-2:50pm EDT. If you are a tax advisor working with wealthy clients in high income tax brackets, and particularly those in high taxed states, be sure to join us to understand Private Placement Life Insurance (PPLI) and how to take advantage of this powerful tax planning tool.
PPLI allows high-net-worth individuals and family offices to purchase alternative investments that grow tax-free in insurance dedicated funds (IDFs) and can be distributed tax-free upon the death of the insured. Since earnings on comparable investments held personally would be subject to federal tax at ordinary or capital gains rates and state income tax, individuals residing in states like New York and California can reap tax savings of nearly 50 percent. Along with tax savings, owners can access the funds tax-free by withdrawing original contributions or borrowing from the policy. PPLIs, however, are subject to stringent IRS guidelines. Insurance standards, diversification, and owner control requirements must be satisfied; otherwise, the policy could be disqualified, resulting in significant tax obligations and penalties.
This webinar will explain PPLI, including structuring considerations, asset selection, optimal trust jurisdictions for PPLI, and meeting IRS requirements for tax practitioners working with high-net-worth taxpayers. The webinar’s panel of experts include David Warren, Co-Founder and Chairman of the Board of Bridgeford Trust Company and William Lipkind, Partner at Wilson Elser.
The panel will discuss the benefits and caveats of PPLI and will review these important issues:
- What restrictions are placed on an investor’s interactions with the PPLI?
- Meeting the diversification of asset requirements.
- Establishing and funding an IDF.
- How does the owner withdraw funds tax-free?
- What steps can be taken to minimize the risk of disqualification?
The webinar program is produced by Strafford, a leading education company providing premium CLE and CPE courses designed for planning professionals in over 40 legal, accounting, and tax practice areas.
To learn more about this webinar, please click here. If you are interested in attending, please reach out to Melissa Roberson, Global Marketing and Digital Media Director, at mroberson@bridgefordtrust.com to inquire about limited passes we have available for friends of Bridgeford.
