White Paper No. 59: The Last, Best Tax Shelter Ever?
Overview
As tax rates on the wealthy have begun to go up again, taxpayers have begun to take a second look at the few legitimate tax shelters still available, and this has renewed interest in investing through insurance dedicated funds (IDFs).
This paper discusses two types of IDFs, Private Placement Variable Annuities (PPVA) and Private Placement Life Insurance (PPLI). Gregory Curtis of Greycourt & Co., Inc., looks at:
- What they are
- How they work
- How they should be invested
- What they cost
- What the special considerations are, including: size, loss of control, diversification and exclusivity rules