PPLI, EWP and Succession Planning – An Introduction

Expanded Worldwide Planning, Private Placement Life Insurance and Succession Planning working together

Estate planning is a crucial part of managing wealth, but it can be complex and challenging, especially for individuals with substantial assets or those who reside in countries with strict inheritance laws. In such cases, Private Placement Life Insurance (PPLI) can offer an attractive solution. When combined with Expanded Worldwide Planning (EWP), PPLI can provide a comprehensive approach to international estate planning that maximizes tax efficiency, asset protection, and estate planning flexibility. In this blog post, we will explore PPLI, EWP, and succession planning, and how these elements work together to help achieve your estate planning goals.

PPLI: An Overview

PPLI is a life insurance policy that offers several advantages over traditional life insurance policies. The policy is purchased outside the home country of the policy owner, and the death benefit is paid out to the beneficiary of the policy upon the death of the insured under the contract. The key advantage of PPLI is that it allows the policy owner to transfer assets without being subject to forced heirship rules, transfer assets directly to beneficiaries, and transfer assets using a controlled and orderly plan. Since the policy is executed outside the home country of the policy owner, the forced heirship laws do not apply, and the policy is governed by the laws of the country where the insurance company is domiciled.

EWP: An Overview

EWP is a comprehensive approach to international estate planning that uses PPLI as a core element. This approach involves structuring an individual’s wealth in a tax-efficient manner and providing maximum asset protection and estate planning flexibility. EWP is typically used by high net worth individuals or those with substantial assets who reside in countries with strict inheritance laws. By using PPLI as a central element of EWP, individuals can create a flexible and robust structure for managing their wealth and protecting their assets.

Succession Planning: An Overview

Succession planning is an essential part of estate planning that involves transferring assets to the next generation while minimizing taxes and preserving the value of the assets. A well-coordinated succession plan can ensure that the transfer of assets is orderly and controlled, and that the assets are protected from potential disputes or legal challenges. By using PPLI as a core element of EWP, individuals can create a succession plan that conforms to their own wishes and not be dictated by the forced heirship rules of their home country.

Conclusion

PPLI, EWP, and succession planning are all essential elements of international estate planning. By using PPLI as a core element of EWP, individuals can create a flexible and robust structure for managing their wealth and protecting their assets, while ensuring that their succession plan conforms to their own wishes. At EWP Financial, we specialize in helping high net worth individuals and those with substantial assets create comprehensive international estate plans that provide maximum tax efficiency, asset protection, and estate planning flexibility. Contact us today to learn more about how we can help you achieve your estate planning goals.