WP90X – Mitigating Income and Estate Taxes: The Optimized CLAT with PPLI
Last Updated: Jan 21, 2025
Description:
Ryan Barradas and Ben Rainey of WealthPoint with Jonathon Morrison of Frazer Ryan Goldberg & Arnold provide an overview of the Optimized CLAT (OCLAT), an income tax solution that is ideal for high-income earners and large sale transactions. The OCLAT vehicle and setup are similar in many ways to a retirement account such as a 401(k) or IRA. Among its many benefits, the principal advantage of the OCLAT is its increased funding limit of up to 30% of your annual income, including earned income and capital gains from a sale transaction, thus reducing federal and state income tax by up to 30%.
Adding PPLI to this equation allows for the same investments as would otherwise be owned in the OCLAT, while enhancing their performance by blocking income taxes back to the grantor and providing additional investment flexibility. When coupled with life insurance, specifically PPLI, the OCLAT has the potential to outperform virtually any other tax or investment product.
Outline:
Please select any of the links below to view.
- Introduction to CLATs
- The Optimized CLAT
- Client Profile and Fact Pattern
- Owning PPLI Inside the OCLAT
- PPLI Results
- U.S. Code §170(f)(10) – Perceived Issues
Presented August 20, 2024
