The PPLI Solution
Delivering Wealth Accumulation, Tax Efficiency, and Asset Protection Through Private Placement Life Insurance
Bloomberg Professional
1. Edition February 2005
368 Pages, Hardcover
Wiley & Sons Ltd
Private placement life insurance (PPLI) was once the exclusive
domain of wealthy investors willing to tackle the logistical
challenges of the offshore insurance market. The investment
portfolio, tax, and estate-planning applications, and ongoing
investment potential of these policies made the effort worthwhile.
In recent years, though, a number of U.S.-based insurance companies
have developed similar policies that meet all U.S. insurance,
investment, and tax regulations.
PPLI is becoming a fundamental component of effective tax,
trust, and estate planning, but few sources have been available to
detail the best practices--until now. The PPLI Solution
can serve as a resource for effective execution. Written by leading
practitioners, the book will position advisers to capitalize as
PPLI expands further into the high-net-worth market and becomes
available to individuals with an investable net worth as low as $1
million.
Few investors--whatever their net worth--will want to
venture into the PPLI market without guidance. The PPLI
Solution addresses the needs of investment managers,
consultants, attorneys, and accountants who want to achieve the
broad understanding of PPLI's applications required of those
providing advice. It can serve as an authoritative source for
anyone--including investors--seeking to know more about
PPLI's nearly perfect tax efficiency, solid creditor
protection, and powerful means of creating wealth.
About the Contributors.
Part One: The Multipurpose Policy.
1 An Introduction to PPLI (John B. Lawson).
2 Risk Management: Redefining Safe Harbors (Jeremiah
Riddle).
3 Tax Management: Building Wealth, Reducing Taxes (Jeffrey S.
Bortnick).
4 Asset Protection: Riches Out of Reach (Gideon Rothschild
and Daniel S. Rubin).
5 Estate Planning: When Insurance Tames Taxes (Mike
Chong).
6 Trust Administration: The Domestic Advantage (Al W. King
III and Pierce H. McDowell III).
7 Executive Benefits: The Plan That Pays Its Way (Leslie N.
Brockhurst).
Part Two: A Vital Investment Vehicle.
8 Toward a More Powerful Portfolio (Kirk Loury).
9 Who's Afraid of Hedge Funds? (George Van and Daniel
T. Hayden).
10 In Search of Skilled Investment Managers (Ronald J.
Surz).
Part Three: Under the Hood--The Essentials on
PPLI.
11 Policy Structure: The Good, the Bad, the Ugly (Paul F.
Berlin).
12 Getting It Right: A Regulatory Overview (Maureen
Nelson).
13 Investment Due Diligence: Beyond the Questionnaire (Keven
de la Cruz).
14 Creating and Administering an Insurance-Dedicated Fund
(Brent Kinetz).
15 Underwriting the Policy (Mike Chong and Anne Melissa
Dowling).
16 Understanding and Comparing Costs (Susan Bruno).
17 Jurisdiction: Home or Away? (Peter M. Williams).
Part Four: Setting Up Shop.
18 Making a Place in Private Banking (Richard
Brindisi).
19 The Family Office: A Perfect Fit (Kirk Loury and Mark
Watson).
Continuing Education Exam.
Index.
fund age' that now dominates the current investment climate. It
is difficult if not impossible to take advantage of these new
opportunities without proper guidance, and Van's and Hayden's
chapter about incorporating hedge funds into private placement life
insurance is a primer for those attracted to the subject. The
due-diligence guide contains practical insights and a 'what to
watch for' section that can serve to avoid costly mistakes."
--Michael G. Tannenbaum, Esq.
Partner, Tannenbaum Helpern Syracuse & Hirschtritt
LLP
President, Hedge Fund Association
"Well conceived, well researched and well written. If you
want to understand the benefits and risks of private placement life
insurance, this is the place to start."
--Glenn S. Daily, CFP, CLU, ChFC
Fee-only insurance consultant, New York, NY
"A unique and comprehensive guide to a complex
subject."
--Preston Tsao
Chairman, Metropolitan Circle of Private Investment, New
York
"The PPLI Solution is a comprehensive multidisciplinary
look at the emerging world of private placement life insurance. It
is a must-read for anyone considering or advising on the purchase
of one of these policies. Understanding private placement life
insurance as a wealth management tool requires legal,
investment, and insurance industry knowledge, and this book
provides it all in a concise manner."
--Steven M. Loeb, JD, LLM
Partner, Cleary Gottlieb Steen & Hamilton
"This book does an excellent job of demystifying PPLI.
True professionals are attempting full disclosure and transparency
in an area that begs for it. For families and their advisers who
need to fully understand PPLI, this book is a winner."
--Thomas R. Livergood
CEO, The Family Wealth Alliance
