Powerful Private Placement Life Insurance Strategies with Trusts


Estate-planning advisors should be aware that there are many creative planning opportunities for the use of Private Placement Life Insurance (PPLI) with trusts. PPLI is essentially a flexible premium variable universal life insurance transactions that occurs within a private placement offering. Previously, PPLI hadn’t been as appealing due to lack of Internal Revenue Service guidelines; limited investment alternatives; and wide-ranging expense charges. Things have radically improved with recent IRS guidance, combined with the turn-key cash value options now offered by the insurance carriers and the policy creditor protection. PPLI can also be very beneficial to clients in high income tax jurisdictions.

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