Maximizing Tax Efficiency with EWP and PPLI

 Unlocking International Wealth Planning

EWP and PPLI working together

In today’s era of tax transparency, we delve into the world of international tax planning and present a solution that can help families reduce their tax burdens while ensuring compliance with tax authorities. Welcome to the realm of Expanded Worldwide Planning (EWP) and the power of Private Placement Life Insurance (PPLI).

Gone are the days when tax codes mirrored ancient civilizations like Hatshepsut’s temple in Egypt. In our modern global economy, governments face the challenge of taxing individuals and businesses that extend beyond their borders. At EWP Financial, we are staunch advocates of EWP, which offers families a simplified framework through carefully structured PPLI policies.

Our approach encompasses innovative strategies, and one such element lies in the realm of in-kind premium payments. By partnering with insurance companies located in jurisdictions that accept non-cash contributions, we empower families to use their assets and businesses as premium payments, rather than relying solely on cash. This flexibility opens doors to significant tax savings without compromising compliance.

PPLI is a customized solution designed exclusively for families seeking tax advantages. Under this globally recognized and tax-favored umbrella, various asset classes can flourish. While PPLI is popular in the United States for tax optimization in securities, such as high-tax hedge funds, our expertise extends beyond borders to cater to the diverse international holdings of families. We construct adaptable structures that accommodate multiple asset classes, including companies, valuables, and collectibles, going beyond the realm of traditional securities.

Here are some fascinating facts to ponder, gleaned from sources like Wikipedia’s articles on “Tax” and “Taxation in the United States”:

– Ancient Egypt, during the First Dynasty around 3000–2800 BC, witnessed the first known system of taxation. The Pharaoh would tour the kingdom every two years, collecting tithes and maintaining records on limestone flakes and papyrus.

– Pre-French Revolution, effective tax rates in Britain exceeded those in France, mainly targeting international trade. In France, taxes were lower but weighed heavily on landowners, individuals, and internal trade, resulting in heightened resentment.

– Historically, taxes on the poor supported the nobility, whereas modern social-security systems aim to support the poor, disabled, or retired by levying taxes on those still actively working.

– The first federal income tax in the United States was introduced as part of the Revenue Act of 1861, although it lapsed after the American Civil War. In 1913, the Sixteenth Amendment to the United States Constitution allowed the federal government to levy income taxes on both property and labor.

As the adage goes, “There is no certainty like death and taxes.”

While we can’t assist with the former, EWP Financial is here to guide international families in harnessing the potential of PPLI. Discover how we can help you achieve tax compliance, enjoy tax deferral, and secure a tax-free death benefit—all while optimizing your wealth for generations to come.

Contact us today to embark on a journey towards maximizing your tax efficiency through EWP and PPLI.

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

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