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Tue, December 17, 2024
[ Tue, Dec 17th 2024 ]: Think Advisor
Draft Bill Attacks Wealthy Families' Private Placement Life Policies
Mon, December 9, 2024
[ Mon, Dec 09th 2024 ]: Think Advisor
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Draft Bill Attacks Wealthy Families' Private Placement Life Policies


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  With the Protecting Proper Life Insurance From Abuse Act, Senate Finance Committee Chairman Ron Wyden has proposed classifying private placement life insurance arrangements as ordinary investment funds.

The article from ThinkAdvisor discusses a draft bill introduced by Senate Finance Committee Chair Ron Wyden aimed at curbing the use of private placement life insurance (PPLI) by wealthy families. The legislation targets what Wyden describes as "abusive tax shelters" that allow high-net-worth individuals to avoid taxes on investment income through PPLI policies. These policies, often structured with variable universal life insurance, enable investors to invest in alternative assets like hedge funds and private equity, with the growth on these investments being tax-deferred or tax-free if held until death. The bill proposes to limit the amount of premiums that can be paid into these policies relative to the death benefit, aiming to close a loophole that has allowed significant tax savings for the ultra-rich. Critics argue that this could impact legitimate estate planning strategies, but supporters believe it's a necessary step to ensure tax fairness.

Read the Full Think Advisor Article at:
[ https://www.thinkadvisor.com/2024/12/17/draft-bill-attacks-wealthy-families-private-placement-life-policies/ ]

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