Private Placement Life Insurance and Variable Annuities

To shield traditional and alternative asset class investments from current period taxation.

Schechter Wealth has been working in the Private Placement Life Insurance environment since 2003. Many of our high net worth and ultra-high net worth clients use Private Placement life insurance (PPLI) and annuities (PPVA) to defer or eliminate income tax on the growth of tax-inefficient investments.

PPLI and Private Placement Variable Annuities (PPVA) offer access to Hedge Funds, MLP’s and Mutual Fund investments in a tax-efficient structure. PPLI can also eliminate tax-related filings. Features of these strategies include:

  • Investment exposure to various strategies and asset classes
  • Elimination of K-1s from underlying investment issuers
  • Transparency of pricing structures
  • No surrender charges

For many clients, PPLI can be an excellent vehicle to access traditionally tax-inefficient hedge funds and hedge fund of funds. PPLI and PPVA are also available through 1035 (like kind) exchanges* from existing life or annuity policies which can allow existing policy owners to lower fees and gain access to greater investment choices.The Schechter Wealth team provides all structuring, reporting and accounting services needed for the management of PPLI Investment Accounts.Our experienced firm of advisors and support teams can help you understand if you can take advantage of the tax benefits of PPLI. This tax strategy, for qualified high net worth individuals, involves properly structuring a life insurance policy to reduce the tax implications on select investment assets.

 

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