PPLI & EWP Basics – EWP and PPLI: A Unity of Assets and Life Insurance – Video 4

Did You Know This About PPLI & EWP? – Episode 4 – Life Insurance: The Magic Ingredient

Private Placement Life Insurance (PPLI) In Action

#EWP and #PPLI: A Unity of Assets and Life Insurance

A PPLI asset structure is arguably the most efficient structure available today for wealthy families who wish a conservative and efficient structure to integrate tax-free investment growth, wealth transfer, and asset protection.

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by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

~ Your best source for PPLI and EWP
Michael Malloy CLU TEP RFC

 

 

 

 

 

 

 

 

 

 

The Metaverse – EWP and PPLI – Video 3

The Metaverse Video Series

The Metaverse Video 3

Transform Your Assets Inside an EWP Metaverse

PPLI Is Your Partner in Creating Financial Strength and Stability

 

The metaverse is a concept that has been thrust into our lives. Is it something new and or just a fad that will die out in a few years? At EWP Financial we are creating our own metaverse that has at its foundation the rock-solid Six Principles of EWP. In this video, through compelling images and concise dialogue, we explain how these Six Principles can create for you a financial future that beneficially transforms your own assets for tax efficiency, privacy, and asset protection.

by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

 

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

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

International Tax Planning

Intro

Welcome. For real estate investors, there are very substantial benefits to using an asset structure that embodies the principles of Expanded Worldwide Planning, or EWP for short. This is true for U.S. persons and non-U.S. persons alike. A properly designed EWP structure both eliminates tax on rental income and tax on the sale of real estate. This is a very powerful result.

Our video details the disreputable methods used by Conservation for Nature’s appraiser, Jay Edwards. Jay’s inflated appraisals give investors unwarranted tax deductions, while the pressure to achieve these inflated appraisals exact an unhealthy influence on Jay’s life in the form of his increased consumption of alcohol and cigarettes. Jay also finds himself in trouble with the Department of Justice and the Tennessee state real estate appraiser board.

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

 

 

 

 

 

 

 

 

 

 

An EWP Asset Structure – PPLI and Crypto – Video 3

Cryptocurrency, Private Placement Life Insurance and Expanded Worldwide Planning

Episode 3

Over the years the most sophisticated clients of EWP Financial have asked three important questions:

Is it legal?

Can they steal my money?

Will I be audited?

This video answers these three important questions. It is our hope that the answers to these questions will give you the assurance you need to place your own holdings into this simple, straightforward, and very powerful asset structure, an EWP Asset Structure.

by Michael Malloy, CLU TEP RFC.
CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

The Expanded Worldwide Planning Stories Video Series – Part 3 – Episode 2 – Tax Shield 2

Video 2-Tax Shield

Go to Episode 1

Introduction

Welcome. Oddly enough many of the tax benefits used in the sophisticated designs of Expanded Worldwide Planning, or EWP for short, are common to most life insurance policies. These tax benefits are:

  • Tax-deferred growth of the cash value
  • No capital gains tax
  • No income tax
  • The ability to access the cash value through tax-free loans, and
  • A tax-free death benefit

In this video we meet Jack Newcastle, an attorney at the IRS. Jack is in the midst of auditing the very company that George Allbright is considering for his conservation easement. Jack’s nickname is ‘Jack the Shark.’ We learn how he earned this nickname, and why he has his current position at the IRS.

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Our Conclusion

Our next video, reveals how Conservation for Nature achieves their inflated tax deductions. You will find out the very person who is most responsible for these inflated deductions, Jay Edwards. Jay is being pushed for larger and larger tax deductions at the cost of both his career and his health.

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 Three of our Tax Shield story.

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.

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 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

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Expanded Worldwide Planning Stories-2

EWP STORIES-Asset Protection

Expanded Worldwide Planning
International Tax Planning

Stories
Part 2: Asset Protection

Our asset protection model is called The EWP Da Vinci Code. Our model is highly effective, yet conservative, and offers more asset protection than the recently invented options available to wealthy families. 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 PPLI. We will share more with you on The EWP Da Vinci Code later in this Chapter.

Asset Protection is a prudent subset of financial planning. As we will read later in this article, some consider asset protection a deceptive, sleight-of-hand trick that deprives creditors from receiving what is lawfully due to them. The law is a double-edged sword that cuts both ways. Our article deals with both sides of this sharp blade.

We take an expansive approach to asset protection, which produces a simple and straightforward solution to this drama? What is the drama you correctly ask?

Read Full Article in Our Partner Site

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by Michael Malloy, CLU TEP RFC.

CEO, Founder @EWP Financial

Michael Malloy-CLU-TEP

 

 

 

 

 

 

 

 

 

 

 

EWP & Trust Substitute-Part 2

International Tax Planning & Trust Substitute—Part 2

EWP (Expanded Worldwide Planning) and Trust Substitute

Private Placement Life Insurance (PPLI) in Action

A Stradivarius Violin Plays the EWP Super Trust

 

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In Part 1 we spoke about how a beginner’s violin knows nothing of the deep, rich, and more pleasing tone of the Stradivarius violin. We equated the Stradivarius violin with the more sophisticated uses of asset structures that employ PPLI to its full effect. In Part 2 we will learn about the EWP Super Trust, which indeed uses the deep, rich, and more pleasing tone of the Stradivarius violin.

Ironically, the most simple PPLI structure, a Frozen Cash Value (FCV) policy, offers wealthy families the most advanced structuring possibilities available in the world today. A family can place almost any asset class that is located almost anywhere in the world into a FCV policy, and still have it compliant with tax authorities worldwide.

The FCV PPLI structure almost eliminates the concept of cash value in the traditional sense. The growth element of the assets in the policy is paid out as a tax-free death benefit at the death of the insured person(s) in the contract. The amount of the death benefit to qualify as life insurance is just a percent or two of the total assets contributed to the policy, as there must be a risk shifting element to qualify as life insurance under the laws of the jurisdictions who issue the policies.

The maximum the owner of the policy can withdraw is the total value of the premium contributed to the policy. This includes in-kind premiums. The structures that we create for the world’s wealthiest families have sizable premium contributions, frequently in the hundreds of millions and multiple billions. Therefore, if withdrawals from the policy are wished, there is plenty to withdraw. More frequently there are no withdrawals, as these families can accomplish what they wish inside the existing FCV PPLI structure.

In essence, the policy is composed of a small amount of life insurance and the worldwide holdings of a family, offering them the maximum amount of privacy, asset protection, and tax efficiency that is possible. With its own three elements of owner, insured, and beneficiary, it goes far beyond the three elements of a trust: settlor or trustor, trustee, and beneficiary. How is this possible? How can it be fully compliant with the U.S. tax code for those families that have a connection to the U.S.?

The EWP Super Trust

FCV PPLI relies on §7702. Section 7702(a), in defining life insurance, states in part, “the term ‘life insurance contract’ means any contract which is a life insurance contract under the applicable law.”

The meaning of “the applicable law” in both §7702(a) and §7702(g) mean that life insurance policies issued under the laws of other countries are indeed life insurance contracts, even if they do not meet the various cash value tests mentioned in the §7702(a).

The insurance laws of these countries allow the death benefit of the insurance contract to be less than its cash value. In fact, within these countries, a life insurance contract is fully compliant with a cash value well in excess of the death benefit of the insurance policy.

The insurance companies that issue FCV PPLI policies design the policies to conform to the laws of the countries where these insurance companies are domiciled. You then have an insurance policy that is fully compliant under “the applicable law” of these countries. Most nations in the world, including the U.S., allow their citizens to purchase life insurance policies that are issued from countries outside their own.

Thus, the FCV PPLI is fully sanctioned for U.S. buyers, and buyers from other nations in the world who wish to avail themselves of this truly remarkable structuring tool: a Trust Substitute that we call an EWP Super Trust.

FCV PPLI asset structures have been in use by U.S. persons and non-U.S. persons for over 25 years without a challenge by the IRS. Our mission at Expanded Worldwide Planning is to make the most advanced asset structuring techniques available to wealthy families throughout the world.

Why not take advantage of this exceptional opportunity which is supported by 100s of billions of dollars of successful structures that have been put in place over these 25 years?

We offer you another chart which shows what a properly structured PPLI policy can accomplish for non-U.S. persons who own real estate in the U.S. compared with structures that just use trust and other entities.

PPLI with IDF vs. Other Real Estate Structures

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A Safe Drive to the Ultimate Destination

We will use a multi-lane motorway or freeway as our analogy on how life insurance is ideally positioned to serve the needs of wealthy families worldwide. Life insurance is recognized throughout the world as a useful financial planning tool to address the retirement, financial planning, and estate tax needs of families. Where is life insurance positioned on this motorway?

The fast lane is for those drivers who are the risk takers, traveling at ever faster speeds until they hear the sound of a patrol car chasing them down. In the slow lane are those drivers who wish to drive the speed limit, or wish to travel at a leisurely pace to reach their destination. In the middle lanes are those drivers who wish to blend into the flow. Not be the fastest on the road, or the slowest. In the universe of financial planning tools, life insurance structures are traveling in these middle lanes.

These middle lane drivers are avoiding the newest innovations in planning techniques championed by those in the fast lane, and, also, staying away from strategies that accomplish little which are adopted by those in the slow lane. The drivers in the middle lanes will reach their destination safely with little risk of a confrontation with the authorities, who are concentrating on the drivers in the fast lane.

By using life insurance as its basic framework, the families driving in the middle lanes accomplish the maximum amount of privacy, asset protection, and tax efficiency. A PPLI life insurance based structure is indeed the best building block available to achieve the six principles of EWP, and be fully compliant with tax authorities worldwide.

Tax Avoidance vs. Tax Evasion

This brings us to the topic of the regulation of financial planning structures. One key distinction is the difference between what is termed tax avoidance and tax evasion. For some regulatory bodies there is little or no distinction between these two concepts. With our EWP approach to asset structuring, we see a large distinction between tax avoidance and tax evasion. On what grounds do we take this position?

Admittedly, our position is self-serving because our clients’ are the world’s wealthiest families. At the same time we challenge those who take the high moral ground of calling tax avoidance and tax evasion the same thing. Our view can be summarized in IRC v. Duke of Westminster, Baron Thomas Tomlin wrote:

“Every man is entitled if he can to order his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure this result, then, however unappreciative the Commissioners of Inland Revenue or his fellow taxpayers may be of his ingenuity, he cannot be compelled to pay an increased tax.”

Yes, there is some line between tax avoidance and tax evasion, but it is not as simple as saying that putting money in a tax-deferred retirement savings account is morally fine because these accounts are intended by the government. But it is immoral to employ tax avoidance such as—assigning low value to intangibles sold to corporate subsidiaries in order to assign profits to low-tax jurisdictions—because this behavior was not intended by legislators.

Defining the line between tax avoidance and tax evasion involves drawing a line that governments themselves have failed to draw adequately, and places blame squarely on the taxpayer for their behavior. This is all based on a rudimentary idea about what the politicians who wrote the law “intended.”

Conclusion

An EWP Super Trust is a unique vehicle for creating the maximum amount of privacy, asset protection, and tax efficiency for the world’s wealthiest families. We await the opportunity to create one for you!

by Michael Malloy, CLU TEP RFC, @ Advanced Financial Solutions, Inc

Michael Malloy-CLU-TEP