Our Blog Posts and Presentations in PDF by Michael Malloy, CLU, TEP – Page 2
How do we achieve understanding?
Our next five articles will comprise an in-depth look at the five main components of our PPLI Concept Map: Professor PPLI to the Rescue.
To be thorough and open to new possibilities at the same time requires discipline: embracing ‘two sides of the same coin.’ In the PPLI structuring of wealthy international families’ assets, Advanced Financial Solutions, Inc. strives to achieve this aim. For each new case we exam similar PPLI cases that we have handled in the past.
When the elements of a transaction are balanced it produces Harmonious Efficiency. This is exactly what is achieved for the assets of wealthy international families in a properly constructed Private Placement Life Insurance Policy (PPLI). PPLI is a product that dates back to the 1980s, so you are not employing something that was invented yesterday.
4. PPLI AND JURISDICTIONAL ISSUES – Whose Jurisdiction Is This? – Private Placement Life Insurance Defines and Simplifies
A proper understanding of jurisdictional issues is key to a successful Private Placement Life Insurance (PPLI) structure. One cannot simply take the assets of wealthy international families and move them offshore and expect a good result. The tax residence of the family is paramount, as well as the tax residence of the beneficiaries. A PPLI structure that is successful in one country, might not work in another. These factors must be thoroughly researched for the wealthy international family to have a successful PPLI structure. Since these PPLI structures tend to be long-term the necessity for this thorough research is even more compelling.
Private Placement Life Insurance (PPLI) allows you to achieve levels of legitimate privacy not possible with solely planning with trusts. The PPLI policy works in harmony with a trust to create an environment of enhanced privacy. So what war are we talking about? This war is being played out worldwide almost daily between governments and individuals on what constitutes privacy.
Private Placement Life Insurance (PPLI) is a type of integrated circuit, read computer chip, in planning for wealthy international families. Both of these remarkable structures remain in the background, and what is visible is the amazing things that they accomplish.
“Simplicity is the ultimate sophistication.”
The transformation from simplicity to sophistication can be accomplished through the rule of law. In our PPLI work for wealthy international families, we must frequently turn complex and sometimes contradictory tax laws into a simple, understandable, and workable structure.
At the center of a Private Placement Life Insurance (PPLI) structure is fungibility. For PPLI this means in essence taking assets in a taxable environment into one that is tax-free. According to the Merriam-Webster dictionary, fungibility derives from the Latin verb fungi meaning “to perform (no relation to the noun “fungus” or the plural “fungi.”)
This week we will learn how a sophisticated structuring technique for wealthy international families, Private Placement Life Insurance (PPLI), has the ability to stop time. Yes, this may seem at first hearing outrageous, but from a tax and privacy perspective, this will be the conclusion of our article.
Private Placement Life Insurance (PPLI Category in our blog) shares a key element with so-called disruptive companies–innovative efficiency. This is expressed in the likes of companies such as Uber and Airbnb. Uber can be thought of as the world’s largest taxi service, but they own no vehicles. Airbnb has been called the world’s largest hotel, yet they do not own hotel buildings.