PPLI Deep Dive – Maximizing Charitable and Financial Objectives with PPVA
Published: March 12, 2024
Description:
A Private Placement Variable Annuity (PPVA) is an institutionally priced variable annuity which allows the owner unlimited contributions and unlimited tax deferral. Wealthy individuals typically use a PPVA structure to either maximize charitable impact at death or to improve wealth transfer objectives on tax inefficient assets.
Retail annuities often carry high fees and limited investment choices. Not so with a PPVA. A PPVA offers extremely low fees, often 50bps or less, and nearly unlimited investment choices via the owner’s chosen investment professional. Nearly anything that the owner owns taxably can be owned inside the PPVA structure.
Just as PPLI is gaining rapid adoption and traction in the ultra-affluent space, so too is PPVA. Join Ben Rainey and Frank Hirsch, J.D. as they unpack the PPVA product. We will discuss how clients are using this structure to accomplish multiple planning objectives:
- Maximize charitable impact – during lifetime and at death
- Maximize wealth transfer objectives related to tax-inefficient investments
- 1035 exchanges from existing retail annuities
- 1035 exchanges from traditional life insurance policies which have embedded losses
Outline:
Please select any of the links below to view.
- What is PPVA?
- The Ideal Client
- Considerations
- Case Study 1 – Increased Philanthropic Impact: Real case study showing how a PPVA can increase charitable impact by over two times. We also look at the “change your mind” scenario for maximum flexibility.
- Case Study 2 – Retail 1035 Exchange Into a PPVA: What are the problems with retail annuities and what are the benefits to exchanging them into a PPVA contract?
- Case Study 3 – Cost Basis Recovery: How does PPVA help a client where their life insurance policy has cash value less than the premiums paid?
Presented March 12, 2024
