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TAKE A CHANCE ON ME! PART II - Embracing the Magic of Private Placement Life Insurance and Private Placement Variable Annuities | Gerald Nowotny

TAKE A CHANCE ON ME! PART II - Embracing the Magic of Private Placement Life Insurance and Private Placement Variable Annuities | Gerald Nowotny
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Modernized Estate Planning with Private Placement Life Insurance

Lifetime exemption levels at all-time highs ($11.7M per individual / $23.4M per couple); April 2021 Mid-Term Applicable Federal Rate (“AFR”) is 0.89%; Top marginal federal estate tax rate is 40% with a potential proposed increase; Top marginal federal income tax rate is 37% with a potential proposed increase; The effective elimination of State and Local Tax (SALT) deductions for UHNW families; and 200+ alternative investment strategies available through PPLI. For comparison, in 1996, an individual’s lifetime exemption was $600K and the January Mid-Term AFR rate was 5.73%.  The top marginal federal estate tax rate was 55% and the top marginal federal income tax rate was 39.6%.  Note: PPLI was in its infancy with limited Insurance Dedicated Funds (IDFs) available. 

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