PPLI vs. Trusts

The panelists will discuss: 

(a) Core features of a policy and trust, including explanation of terms such a “cash value”, “insurable interest”, “policy distribution” and related trust terms such as “fiduciary office” “fiduciary obligation” and “reserved powers”;

(b) Lifecycle differences in settling a trust and subscribing to a policy will also be compared, using the case of a transfer of shares in a company (in specie subscription);

(c) Lifecycle differences in the administration of a trust and policy will be compared, split into:

    (i) Control: methods to retain control under a trust compared to a policy, particularly in relation to governance and control of an underlying company;

   (ii) Benefit: methods to extract benefits from a trust compared to a policy, including a discussion of policy holder redemptions and policy beneficiary distributions;  

   (iii) Asset Protection: asset protection attributes of a trust and policy compared, particularly in relation to succession, divorce, community property and creditor claims; 

   (iv) Taxation: tax treatment of a trust and policy compared, with recent changes to Indonesia tax law used to illustrate; 

   (v) Transparency: financial account reporting (CRS) of a trust and policy during each lifecycle event will also be compared and contrasted.

(d) Termination of a trust and policy will also be compared, including possible considerations that may arise where a settlor passes away as compared to a policy holder;

(e) Finally, we shall consider combination use of a trust with a PPLI, both in the context of a trust as a policy beneficiary, as well as the case where there is an assignment of a policy into

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Webinar audio recording dated 8 Dec 2020. See Disclaimer, Copyright and Trademarks at https://www.zaclucas.com/disclaimer