CRYPTO – PPLI and EWP – Episode 2 – The EWP Stories Video Series

The Expanded Worldwide Planning Video Series

Cryptocurrency, Private Placement Life Insurance and Expanded Worldwide Planning

Video 2

INTRO

Welcome. In our first video of our series on crypto currencies we introduced you to our firm EWP Financial. In this video we continue with this topic, but first an important point: if you are new to asset structuring, you are probably thinking, well, EWP Financial seems like a good firm with plenty of experience, but what is EWP Financial going to do for my crypto currency? Why should I put my crypto into this type of asset structure?

by Michael Malloy, CLU TEP RFC.

CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

Tax Shield 1 – Episode 1 – Part 3 – The EWP Stories Video Series

The Expanded Worldwide Planning Stories Video Series – Part 3 – Episode 1 – Tax Shield 1

Introduction
Welcome. Why strain to invent an asset structure that will very likely draw the attention of tax authorities, because of its convoluted and aggressive design? Why not use a financial tool that has been in use since Ancient Rome–life insurance? This will give you the best tax shield available today bar none.

Our story involves the failed attempt of George Allbright to use a conservation easement that produces an inflated tax deduction. George discovers when it’s almost too late why it’s important to use a firmly established asset structure rather than one that will just get you in trouble with the IRS.

by Michael Malloy, CLU TEP RFC.

CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

 

CRYPTO-PPLI and EWP – Episode 1 – The EWP Stories Video Series

Cryptocurrency, Private Placement Life Insurance and Expanded Worldwide Planning

Crypto, PPLI and EWP

The EWP Stories Video Series

Video 1

Celebrating a happy ending and a new great  beginning we want to introduce you to a fresh Video Series

Welcome. The blockchain concept has given birth to crypto currencies. This is a relatively new phenomena in our lives. Yet taxes have been with us since early dynastic Egypt and probably before. Recently passed tax legislation in the U.S. is a cause of concern for all those who hold crypto currencies. Similar laws are being passed by governments throughout the world. For this recent U.S. tax legislation, we include below excerpts from Robert W. Wood’s excellent article in the Cointelegraph.

What most of you don’t know is that there is a simple and straightforward solution to these new taxes that has existed since the 1980s. The beauty of this solution is that it is asset neutral, meaning even though crypto currencies are a new asset class, this solution wholeheartedly welcomes crypto currencies. For this solution, crypto currencies are handled the same as any common asset class like stocks, bonds, and real estate.

What is this simple and straightforward solution to the grave tax problem that is facing crypto currencies: Private Placement Life Insurance, or PPLI for short. But not just any PPLI policy. The solution is a PPLI policy that is structured to embody the six principles of Expanded Worldwide Planning, or EWP for short. Our firm, EWP Financial, was an early adopter of this powerful yet conservation asset structure.

This series of videos will give you the basic principles of a properly designed EWP asset structure. An EWP asset structure is the perfect solution to the recently introduced tax legislation in the United States that threatens to wipe out a good portion of your gains in crypto currencies. An EWP asset structure is equally effective if you are a tax payer in a country outside the U.S. In this video, Part One, we introduce you to EWP Financial and our unique approach to asset structuring.

Things to know (and fear) about new IRS crypto tax reporting

By Robert W. Wood

The new law redefines “cash” to include “any digital representation of value” including cryptocurrency, but in an anonymous system, is this going to work?

The Infrastructure Investment and Jobs Act (H.R. 3684) put crypto in the crosshairs, where Congress and the Internal Revenue Service (IRS) hope to scoop up enormous tax dollars. This reporting regime is projected to rake in an astounding $28 billion over the next ten years. No other provision in this massive recently enacted federal law is supposed to produce tax dollars that are even close. If you don’t think that means the IRS is coming for your crypto in a very big way and that Congress is trying hard to facilitate it, think again.

The crypto community was outraged when the measure was first proposed and tried to push back hard. That effort resulted in some narrowing, but the provisions were enacted anyway. Some people are still talking about a repeal effort, but that could prove to be a hard sell when $28 billion is on the line that the Biden administration may need. As enacted, Form 1099 and other reporting rules don’t take effect until December 31, 2023. Even so, since Form 1099 reports are done in January for the prior year. That means 2023 will be a big tax year.

And with 2022 right around the corner and 2021 tax returns due soon thereafter, it’s a good time to get your tax affairs in order. Key new questions are whether you are a broker, and who is. And how will these sweeping onerous reporting rules be applied? With potential civil and even criminal penalties, you can bet that most exchanges, and others who might be in doubt about whether they are brokers subject to the new law, may resolve any doubts in favor of reporting. Surprisingly, exactly what constitutes being engaged in a trade or business may be open questions too.

Over $10,000 crypto reporting

The broker reporting on Form 1099-B pales in comparison to the new cash-like reporting form requirements with their staggering criminal liability. In 2014, the IRS announced that it would treat crypto as property, not as money. The reverberations of that rule to your taxes are huge. That’s the reason just about every successive transfer or trade of crypto (even for other crypto) triggers more taxes. Yet ironically, Congress and the IRS are now taking a page from cash reporting.

For decades, transactions of more than $10,000 in cash have generated a requirement for any business to file an IRS Form 8300 within 15 days, to report the cash transaction to the IRS. Buy a car with more than $10,000 of cash, and the car dealer has to report you. If you go to the bank and take out your own $10,001 in cash, the bank is required to report you to the IRS. Pay a consultant with more than $10,000 in cash, and your consultant must report you to the IRS.

Of course, the IRS being interested in crypto is nothing new. Everyone is already required to report crypto gains to the IRS. There’s even a “do you crypto” question on every IRS Form 1040 or individual income tax return now. It’s often compared to the “do you have a foreign bank account” question that appears on Schedule B, and that has led to many criminal convictions for the IRS, and big civil penalties.

The new requirements are sweeping. And although there is a grace period until Dec. 31, 2023, many changes will be needed to make them suitable and applicable. The new law mandates that a recipient of more than $10,000 in crypto who is in business must collect, verify and report a sender’s personally identifiable information within 15 days. If you don’t, you can face fines and even criminal liability.

Saying that you are an investor and not in business might seem to be attractive if you have strong arguments on that point. However, there is an enormous body of tax law on that topic, with some discernible standards, and the stakes are big. Will any of this be easy in what is often an anonymous peer-to-peer system? Probably not, but there will likely be fear about the new rules, and some degree of filing to be safe rather than sorry.

Robert W. Wood is a tax lawyer representing clients worldwide from the office of Wood LLP in San Francisco, where he is a managing partner. He is the author of numerous tax books and frequently writes about taxes for Forbes, Tax Notes and other publications.

This article is for general information purposes and is not intended to be and should not be taken as legal advice.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Conclusion

In our next video, Part Two, we continue with our theme of financial architecture. You will also be introduced to the regional representatives of EWP Financial, and how they serve the world’s wealthiest families. This knowledge is essential to all those who wish to keep their profits from crypto currencies, and not give back their earnings in the form of unwanted taxes.

If you found this video useful please give us a like, and click on the subscribe button below. We look forward to connecting with you in Part Two. Thank you very much for joining us.

To learn how the wealthiest families in the world conduct their financial affairs, please call +1 530 692 1007, or email us at info@expandedworldwideplanning.com.

At your convenience, we can arrange a call to discuss how our unique blueprint can vastly enhance your asset structure.

Disclaimer

The opinions expressed in this video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any financial structure, investment, or insurance product.

by Michael Malloy, CLU TEP RFC.

CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

ASSET PROTECTION 3 – Episode 3 – Part 2 – The EWP Stories Video Series

The Expanded Worldwide Planning Stories Video Series – Part 2 Episode 3 – Asset Protection 3

Asset Protection 3

Introduction

Welcome. Our asset protection model is called The EWP Da Vinci Code. We call it The EWP Da Vinci Code for two reasons: the first is because Leonardo Da Vinci said, “Simplicity is ultimate sophistication, and second, our asset protection model is the opposite of the convoluted plot of the popular film, The Da Vinci Code. Our model is a simple, straightforward, and highly effective technique.

In today’s world of financial transparency, there is no hiding of financial assets. The EWP Da Vinci Code brings you peace of mind through a long-established and secure financial structure—life insurance, in the form of Private Placement Life Insurance, or PPLI for short. Our model is highly effective, yet conservative, and offers more asset protection than the recently invented options available to wealthy families.

In this video, we follow the plight of Janice Johanson, who through poor asset protection planning must forfeit a substantial part of $100M that she received from the sale of her business. We encourage you to learn from Janice’s mistake, and protect your own businesses and assets with an EWP asset structure.


The gleaming, antiseptic surfaces in combination with the glare of the fluorescent lights gave Brian a sharp inner chill. Not the chill of cold on his body, but an aching chill in the pit of his stomach. He was about to face the unintended victim who might be the cause of his client’s demise, and his own firing from a lucrative client of his firm.

Several years ago under Brian’s direction, he had helped establish a captive insurance company for Janice’s chain of wine shops. This self-insurance vehicle both saved premium dollars on their current policies, and reduced the company’s taxes. It was a smart decision at the time.

He now realized that he had done a poor job of monitoring the captive insurer, giving responsibility over to the captive manager. Under the manager’s advice they had established the captive in a state that had minimum capital requirements, and funded the company with minimum surplus requirements. The company’s ability to pay a liability claim for Steve’s fall was wholly inadequate.

Because the captive company had been established, Brian advised that they cancel their General Liability and Excess Liability insurance policies. To make matters worse, there was also scant legal defense to mount for the negligent behavior of the store clerk.

Where were the funds to pay for this horrific accident? How would Janice react when he told her that the $100M buyout money would have to be used?

Brian’s leather-soled shoes slide at each step along the highly polished floor. He had been directed to a special unit of the hospital, a section that housed patients who needed extreme monitoring after leaving the ICU. Steve was diagnosed with severe traumatic brain injury (TBI), and was in a coma.

On both sides of Steve’s hospital bed were the machines that told doctors and nurses that Steve was alive. Digital displays and electronic beeps that would erupt into loud piercing alarms, if his vital signs went wrong. What was now Steve seemed like a frail, foreign object amidst this array of electronic equipment. A very slight rise and fall of the bed cover gave evidence of life.

TBI victims go through definite stages: coma, vegetative stage, minimally conscious state, and post-traumatic confusional state. They might not progress at all from one stage to the next. Each patient was different. Steve might never emerge from the coma, be impaired, or be severely impaired.

Brian had seen enough. It was now time to prepare himself to be fired, and be further away from becoming a partner at his firm. He had hoped to achieve this in the next year, now that was definitely out of the question.

As he turned out of the hallway to the main entrance of the hospital, he thought he saw an older couple and a tearful young woman entering Steve’s room. Most probably they were his parents and his girlfriend. Meeting them would have been beyond his current emotional state. He had royally messed up. But he accepted responsibility, and did not try to blame others. There was no one else to blame.

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In our next video, and concluding video on asset protection, we find Janice Johanson on the verge of another business venture. But this time she has resolved to use an EWP asset structure to protect her new business against unexpected loss. Janice has learned the hard way. We hope you can benefit from her example.

If you found this video useful, please give us a Like, and click on the subscribe button below. We look forward to connecting with you in Episode Three.

To learn how the wealthiest families in the world conduct their financial affairs, please call +1 530 692 1007, or email us at info@expandedworldwideplanning.com.

At your convenience, we can arrange a call to discuss how our unique blueprint can vastly enhance your asset structure.

Disclaimer

The opinions expressed in this video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any financial structure, investment, or insurance product.

 

by Michael Malloy, CLU TEP RFC.

CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

ASSET PROTECTION 2 – Episode 2 – Part 2 – The EWP Stories Video Series

Asset Protection 2

The Expanded Worldwide Planning Stories Video Series – Part 2 Episode 2 – Asset Protection 2

Introduction

Welcome. The goal of many entrepreneurs is to grow a successful business, then sell it and retire on the profit of the sale. Janet Johanson was such a person, but because of poor asset protection planning, her $100M from the sale of her profitable wine store business was snatched from her on the eve of her retirement.

A key element of any asset structure should be asset protection. Indeed one of the six principles of Expanded Worldwide Planning, or EWP for short, is asset protection. With EWP the key element of asset protection is embedded into the structure, and is not an additional element that must be added at additional cost and complexity.

——————————————————————————————————————————

Janice felt on top of the world in more ways than one. She was now looking at the Swiss Alps on her balcony in Spiez on the southern shore of Lake Thun. Janice was also completing the sale of her wine store chain. She would be receiving $100M for her twenty years work. She began the chain with a keen enthusiasm for wine, a small inheritance from her uncle, and a rat infested storefront on the Bowery in New York City.

Through careful sourcing of wines throughout the world, her excellent palate, and buyers hungry for good quality wine at a reasonable price, she had grown her one store into a multi-city chain. She was relaxing, as though for the first time in twenty years. Her taunt athletic frame was not built for relaxation. When she would allow herself time away from her business, relaxation took for the form of competing in Triathlons. She did allow herself the time to stay in top physical condition.

The jet streaking above the Alps reminded her of her own flight several days ago. The ad read: “Fly a Real Fighter Jet. Be a fighter pilot for a day.” When she saw the ad, she couldn’t resist. She paid $5,000 for 30 minutes with an experienced ex-military fighter pilot. She was exhilarated to the core every minute of the flight. She was transported to a new world, as the pilot navigated the high and jagged peaks of the Alps with its narrow valleys and tightly constricted airspace. She did not want the flight to end.

Her room phone rang. “Hello,” she answered.

“Janice, I have unwelcome news for you.” Janice recognized the voice of her attorney, Brian Spencer.

“Yes, Brian, what is it?”

“There has been a serious accident at a store in New York City.”

“Well, don’t we have insurance for this.”

Brian said weakly, “Maybe.”

“Why maybe? Don’t we now have our captive insurance?”

Brian said in a dull tone, “We need to talk.”

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Conclusion

In our next video, we follow Brian Spencer, Janet’s attorney, into a hospital ward to see for himself the very unfortunate result of an accident at one of Janet’s wine shops. The promising career of a medical student, Steve De Marco, was cut short by slipping on a wet floor at the wine shop. Steve was on track to become an excellent heart surgeon, but was now lying in a coma in the hospital.

On the advice of her attorney, Janet had entered into a captive insurance arrangement, but it turned out to be just an expensive stack of papers. This poorly executed captive insurance company did not have the funds to pay for Steve’s accident, and the certain multi-million dollar settlement for damages. In Episode three, you will learn how an EWP structure is a vastly superior asset protection strategy.

If you found this video useful, please give us a like, and click on the subscribe button below. We look forward to connecting with you in Episode Three.

To learn how the wealthiest families in the world conduct their financial affairs, please call +1 530 692 1007, or email us at info@expandedworldwideplanning.com.

At your convenience, we can arrange a call to discuss how our unique blueprint can vastly enhance your asset structure.

Disclaimer

The opinions expressed in this video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any financial structure, investment, or insurance product.

 

by Michael Malloy, CLU TEP RFC.

CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

The EWP Stories Video Series – Part 2 – Episode 1 – ASSET PROTECTION 1

Asset Protection 1

The Expanded Worldwide Planning Stories Video Series – Part 2

Episode 1 – Asset Protection

#Asset #Protection – Video 1 – Introduction

Welcome. In this video the topic of our story is one of the cornerstones of any asset structure–asset protection planning. Expanded Worldwide Planning, or EWP for short, gives a wealthy family asset protection by its very nature, it is not something that must be added.

Why is this so? Because life insurance is one of the rare items that is favored for asset planning under the tax code. This is especially true for the advanced structures that our firm constructs for wealthy families worldwide. Remember, most families place the majority of their assets into an EWP structure, so they achieve superior asset protection for all these assets worldwide.

Our story involves Janet Johanson, an exceptionally talented entrepreneur, who seemingly did all the right things to protect herself against an untimely loss of her assets. How did the devastating loss of $100M wipe out her early retirement? One of her advisors made a critical mistake. We hope you will learn from this video, and not travel down the same path.

—————————————————————————————————-

Steve waited impatiently in the long line at Starbucks. He still needed groceries to cook dinner for his girlfriend, but needed a coffee. Steve was in his last year of residency at Mt. Sinai Hospital in New York City. The long hours at the hospital under the close scrutiny of his attending physician were wearing him down. Steve was equally impatient to finish his residency, and begin his practice.

With his straight A’s through medical school, and a remarkably deft hand with medical instruments, his new career as a heart surgeon looked more than promising. Steve was a man poised for success.

Steve made quick work of shopping at Whole Foods, then, proceeded to a wine shop. It was a chain that sold well-selected bottles from around the world at a fair price. He entered by a side door.

A clerk at the wine shop, had just finished cleaning up a large pile of dog poop on the street outside the door. He had entered just before Steve with his mop trailing behind him, not realizing that it was leaving a stream of water in his wake.

Steve stepped into the wine shop. “My God,” he gasped loudly.

As his foot touched the slippery surface of the watery stone floor, it slid. He tried to steady himself. He was heading towards the ground like a wounded soldier in battle. There was now no way to regain control. Both legs shot out from under him, and he landed hard, directly on his lower spine, and then hit his head on the hard floor.

“Crack,” it sounded.

The customers nearby winced in an automatic sympathetic response, even before they turned their heads to see what had happened.

Steve lay sprawled on the hard, cold stone floor with blood flowing from his skull. The store manager jostled several customers in his attempt to reach Steve.

As he saw his customer unconscious, he immediately took out his cell phone and called 911.

—————————————————————————————————-

In our next video, Janet Johanson begins her early retirement with the $100M from the sale of her chain of wine shops, only to find out that there has been a serious accident at one of the shops. This accident occurred before the sale of her business had been finalized. She learns from her attorney that there might be a problem with the captive insurance she thought that she had in place to address accidents like this.

If you found this video useful, please give us a like, and click on the subscribe button below. We look forward to connecting with you in Episode Two.

To learn how the wealthiest families in the world conduct their financial affairs, please call +1 530 692 1007, or email us at info@expandedworldwideplanning.com.

At your convenience, we can arrange a call to discuss how our unique blueprint can vastly enhance your asset structure.

Disclaimer

The opinions expressed in this video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any financial structure, investment, or insurance product.

by Michael Malloy, CLU TEP RFC.

CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

The EWP Stories Video Series – Part 1 – Episode 4 – PRIVACY 4

The Expanded Worldwide Planning Stories Video Series – Part 1 – Episode 4  #PRIVACY 4

Introduction

Welcome. In this video we conclude our story on Privacy. Carlos Gutierrez attempts to heal the emotional devastation brought about by the kidnapping of his daughter and a falsified lawsuit, both engineered by a ruthless, Mexican drug cartel.

Carlos is brought to the realization that he needs an asset structure that will shield his business and family from these catastrophic events. That asset structure is easily obtained by employing the six principles of Expanded Worldwide Planning, or EWP for short. This is what our firm, EWP Financial, provides to all families who use our services.


One week later Carlos Gutierrez found it difficult to pursue life in his usual diligent and focused manner. His daughter Lucinda had been returned by the cartel, unharmed physically, but shaken to the core psychologically. Carlos was now flying back from San Jose to one of his homes near La Jolla in southern California.

He requested his pilot to take a route directly south from Santa Barbara, over the Channel Islands, only veering east after San Clemente Island. It was the most common route when he flew commercially before he could afford to keep a private jet. Carlos was attempting to re-establish some order in his life.

Before the kidnapping and the lawsuit, he and his family inhabited a safe and orderly world, cut off from the concerns of those outside this thin bubble. When it burst more illusions escaped than he had ever thought possible. He could repair things with money, but money alone could not repair his family’s current emotional devastation.

One of his business strengths was the ability to inspire those who could put his creative electrical engineering concepts into integrated circuits and the other components of his medical devices. In San Jose he had visited a shop owned by Koreans, who were excellent to work with, and could manage his sometimes maddening deadlines.

Carlos was spared the emotional distress of having to speak with Juan again. The insurance company that wrote his Kidnap and Ransom insurance took over the successful negotiations with the cartel so that his daughter could be freed. He still could not fathom how his best friend of twenty years ago could now be working for one of the most vicious and notorious drug cartels in Mexico.

Although not currently a churchgoer, he was raised a Roman Catholic. He reflected on the forbidden fruit of the Garden of Eden. Just one week ago, he had lived in a similar paradise. But like Adam and Eve, he could now not return to this peaceful and predictable world.

The moist, soft, delicious avocado fruit was his last link to Juan. After all, the fruit that Eve ate was called the fruit of good and evil. How strange it turned out to be good for Carlos and evil for Juan.

His jet gently sloped down to the runway. He promised himself to protect his financial affairs ever more vigilantly. Yes, the former bubble had burst, but he could construct a more solid one going forward.

All he could be sure of was that Juan had taken his path in life, and he had taken another. Carlos’s new path would have to include a more solid asset structure; one that offered him iron-clad privacy for his financial affairs. After all, he had amassed his billions by never compromising until he had achieved the most perfect solution possible.

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Conclusion

Our next video begins with another key principle of EWP–asset protection. It is said that ‘accidents never happen at the right time.’ In this video, you will learn how a successful entrepreneur lost $100M dollars, due to improper asset protection planning. In this story, the accident happened at the worst possible time, and whipped out the fruit of her 20 years of hard work in building her excellent chain of wine shops.

If you found this video useful, please give us a like, and click on the subscribe button below. We look forward to connecting with you in our next video.

To learn how the wealthiest families in the world conduct their financial affairs, please call +1 530 692 1007, or email us at info@expandedworldwideplanning.com.

At your convenience, we can arrange a call to discuss how our unique blueprint can vastly enhance your asset structure.

Disclaimer

The opinions expressed in this video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any financial structure, investment, or insurance product.

by Michael Malloy, CLU TEP RFC.

CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

The EWP Stories Video Series – Part 1 – Episode 3

Expanded Worldwide Planning: Insures: PRIVACY – 3

Introduction

Welcome. Privacy is a key element. Wealthy families are looking for ways to keep their affairs private, and still be compliant with tax authorities worldwide.

Today what was once private and personal becomes public and accessible to all. Computers and other electronic devices are part of our lives, whatever our opinion of them. These devices can add convenience and efficiency to our lives, but at a cost.

At EWP Financial we embrace the Privacy Principle. The Privacy Principle is unique as it legally shields wealthy families from unwanted intrusions into their financial affairs. At the same time, the Privacy Principle is fully transparent and gives wealthy families a bespoke, compliant asset structure for all their holdings, wherever they might be throughout the world.

We continue our story on the plight of Carlos Gutierrez. The scene is Mexico City where we discover how the same drug cartel that kidnapped Carlos’s daughter, Lucinda, is planning to publicly destroy Carlos by using bribery to bring a falsified lawsuit against Carlos.


Diego wondered how he was to receive his bribe. He was told by his contact to buy a burner phone on Wednesday, and throw it away that evening after he received a text. His contact had booked him a table for 7pm at the Bellini Restaurant, atop the World Trade Center on the 45th floor in Mexico City.

“Good evening, sir,” said the handsome young man in his well-tailored valet parking uniform.

His car door was politely closed, and Diego pulled away, feeling somewhat sheepish and out of place with his old Prius at this expensive restaurant in Mexico City. The Bellini was an uncomfortable experience for Diego. This showed in the perspiration draining down his shirt from below his armpits. In his highly excited state, he had forgotten to put on deodorant this morning.

He had barely noticed the dazzling lights that lay below him. He ate but did not taste the exquisite meal that was paid for by his contact. The restaurant magically revolved 360 degrees, but he might as well have been facing a blank wall. Diego only thought of one thing, and one thing only: “Will I get paid, or will they kill me instead.”

As he was traveling toward his small apartment, he received a text, Look in the glove box, then destroy your phone. I mean destroy it completely.

Diego opened the glove box to find a bulging manilla envelope, which filled his entire glove box. He tore it open to find cash. Plenty of cash. 400,000 pesos, about $20,000U.S. dollars. The equivalent of his annual salary.

Why were 400,000 pesos put in his glove box? The reason was simple. Diego worked at the Servicio de Administración Tributaria, the SAT. The SAT is the revenue service of the Mexican federal government. Diego had access to information that the cartel wanted to destroy Carlos Guittierez.

A new law had come into effect January 1, 2020. The law stipulated that tax evasion will turn into a charge of organized crime if three or more people are aware of an illegal tax scheme. This could result in companies being held criminally liable for tax offenses. Diego had access to salient information in Mexico’s Register of Beneficial Ownership. The cartel was going to use this information to falsely charge Carlos under this new law.

How ironic that a successful businessman like Carlos could be discredited by an organized crime cartel when he went to great lengths to comply with all of Mexico’s laws. In a sinister way, the designs of Carlos’s intricate electronic components mirrored the devious, deceptive, and criminal practices of the cartel. One was used for good, and the other to destroy an innocent man.

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Conclusion

In our introduction, we mentioned the Privacy Principle. The Privacy Principle of EWP accomplishes its objective in several key ways:

  • Upon transfer into the PPLI policy, the insurance company becomes the beneficial owner of all the assets in the policy;
  • If there is reporting to a tax authority for the asset structure, only one number is reported. This is the total cash value of all the assets in the PPLI policy. The individual assets are not reported;
  • The bank account that is usually opened in connection with a PPLI policy is opened in the name of the insurance company, not the policyowner. The policyowner has full access to the funds in the bank account in accordance with the assets inside the policy.

In our next video, Episode Four, we conclude our story. The scene shifts back to California. Carlos realizes that he must reconstruct his financial affairs using an EWP asset structure. He also realizes that if he had employed an EWP asset structure the kidnapping of his daughter and the falsified lawsuit would most probably not have occurred.

If you enjoyed this video, please give us a like below, and click on the subscribe button. We look forward to connecting with you in Episode Four.

To learn how the wealthiest families in the world conduct their financial affairs, please call +1 530 692 1007, or email us at info@expandedworldwideplanning.com.

At your convenience, we can arrange a call to discuss how our unique blueprint can vastly enhance your asset structure.

Disclaimer

The opinions expressed in this video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any financial structure, investment, or insurance product.

by Michael Malloy, CLU TEP RFC.

CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

The EWP Stories Video Series – Part 1 – Episode 2

Expanded Worldwide Planning: Insures: PRIVACY – 2

Welcome. The topic of our story is Privacy. You gain an immediate understanding of Privacy when you are deprived of it. What better example of this than the personal violation that you experience when someone you dearly love is kidnapped? In Part 2 of our story, we learn more of the emotional trauma that Carlos Gutierrez experiences when his daughter Lucinda is kidnapped by a Mexican drug cartel.

Privacy is one of the six principles of Expanded Worldwide Planning, or EWP for short. When assets are placed into a properly constructed Private Placement Life Insurance policy they are re-titled in the name of the insurance company. This is similar to the re-titling of real estate when it is transferred to another entity like an LLC. This has the effect of removing these assets from the prying eyes of those who seek to harm you, like the drug cartel in our story.

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Carlos weaved to the door of the warehouse, followed closely by his pilot. Carlos fumbled with the key and finally opened the door to the office warehouse. His long-time pilot also functioned as confidant and body guard, so he told him in Spanish what just occurred.

Carlos was educated mostly in the United States, having received a masters degree in electrical engineering from Columbia University in New York. But English was his second language. Like all of us in times of emotional turmoil, he sought some comfort. Presently the only solace available was to speak his native language.

The plight of his daughter was beyond devastating, but the next step he knew was only a phone call away. He would call his insurance broker. Carlos had purchased Kidnap and Ransom insurance for his family, since the Mexican drug cartels had recently moved into his native Michoacan state, seeking to legitimize their sources of income by terrorizing the local avocado growers. By means of intimidation and violence, they sought access to this lucrative agricultural industry. His family were third generation avocado growers.

What put Carlos into a state of emotional delirium was hearing the voice of Juan, his best friend at Columbia University. Juan had been a model student, an honor student like Carlos, and a kind and generous person. His involvement in his daughter’s kidnapping seemed preposterous. He would not have believed it, if it weren’t for hearing his voice.

Carlos was meticulous in his financial affairs. His company had the ability to assemble the most advanced and sophisticated electronic components. He had become a billionaire in his early 40s through his design of innovative electronics for medical devices. He abided by the aw, both in Mexico and the U.S. Carlos was proud to be a citizen of both the U.S. and Mexico, even though it cost him financially to do so.

The last time Carlos had been with Juan was after college at his family farm outside the city of Uruapan. They had climbed onto one of the old avocado trees, to drink beer together and eat avocados. They were looking forward to launching their careers after college. He remembered the solid branches supporting them, the ripe avocados at their fingertips, with the dappled sunlight making the tree a private world of their own. He remembered the light being soft and multicolored like the light coming through stained glass in a church. They exuberantly discussed their prospects. Joining a drug cartel was definitely not on their list of future possibilities.

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Conclusion

In our next episode, the scene shifts location to Mexico City where we learn how the same drug cartel that has kidnapped Carlos’s daughter, Lucinda, has bribed an official of the Mexican tax authority in order to publicly destroy the reputation of Carlos.

We will learn how this could have been avoided, had Carlos used a properly structured PPLI policy. The information that was obtained by bribing an official of the tax authority, would not have been available had Carlos used an EWP structure. All his assets would have been put in the name of an insurance company, thus, shielded from the illegal activities of the drug cartel.

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To learn how the wealthiest families in the world conduct their financial affairs, please call +1 530 692 1007, or email us at info@expandedworldwideplanning.com.

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Disclaimer

The opinions expressed in this video are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual on any financial structure, investment, or insurance product.

 

by Michael Malloy, CLU TEP RFC.

CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

Expanded Worldwide Planning Stories-3

EWP Stories-Part 3-Tax Shield

Expanded Worldwide Planning
International Tax Planning

Stories
Part 3: Tax Shield

EWP adds tax deferral, income, estate tax benefits and dynasty tax planning opportunities. Assets held in a life insurance contract are considered tax-deferred in most jurisdictions throughout the world. Likewise, PPLI policies that are properly constructed shield the assets from all taxes. In most cases, upon the death of the insured, benefits are paid as a tax free death benefit.

The best comment made about the tax benefits of PPLI is from the October 1994 article in Offshore Investment by Professor Craig Hampton:

“I was visiting a gentleman at his home in the Piccadilly district of London. It was explained to me that his net worth exceeded $100 millionU.S. by a substantial margin. I noticed the presence of a computer terminal on a large desk in his den. It was surrounded by reams of paper dealing with offshore investing.

It soon became apparent that his affluence was due to his own efforts when he said to me:

“You’re a bright young man who obviously knows his craft. But what can you tell me that I don’t already know about finances?”

I leaned forward and made this simple statement:

“Through the creative use of international life insurance, your financial affairs can be arranged so that you will never have to pay income taxes for the rest of your life!” The gentleman took serious notice, and thus was born the Hampton Freeze.”

The Hampton Freeze is the name coined for the various PPLI designs developed by Professor Craig Hampton in the early 1990s. These designs were utilized in cases where the premium was over $100M, but can also be employed for PPLI policies with lesser amounts of premium.

Oddly enough many of the tax benefits used for the sophisticated designs like the Hampton Freeze utilize the same tax benefits common to all life insurance policies.

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by Michael Malloy, CLU TEP RFC.

CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP