INTERNATIONAL PRIVATE CLIENT
8 Dec 2020
PPLI vs. Trust
In this webinar, we shall compare Private Placement Life Insurance (policy) with a Trust.
The panelists will discuss the following:
(a) Core features of a policy and trust, including an explanation of terms such as “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:
Control: methods to retain control under a trust compared to a policy, particularly in relation to governance and control of an underlying company;
Benefit: methods to extract benefits from a trust compared to a policy, including a discussion of policyholder redemptions and policy beneficiary distributions;
Asset Protection: asset protection attributes of a trust and policy compared, particularly in relation to succession, divorce, community property and creditor claims;
Taxation: tax treatment of a trust and policy compared, with recent changes to Indonesia tax law used to illustrate;
Transparency: financial account reporting (CRS) of a trust and policy during each lifecycle event will also be compared and contrasted.
(d) Termination of trust and policy will also be compared, including possible considerations that may arise where a settlor passes away as compared to a policyholder;
(e) Finally, we shall consider the 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 trust.
Private Client Head Asia,
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