
Elimination of Capital-Gains, Tax-Free Growth, Tax-Free Borrowing, Elimination of Estate Tax. This structure offers some of the best tax planning benefits available today. Investors with appreciated assets of at least $1 million (public or private stock, real estate, etc.) can use the FVUL structure to obtain significant tax savings.
The FVUL can eliminate 3 levels of tax:
- A. capital gains tax,
- B. tax on reinvested income, and
- C. estate tax.
Private Variable Annuity
The full FVUL structure contains several components. First, an investor transfers assets to an insurance company in exchange for a deferred private annuity.
The insurance company can be directed to either hold or sell such assets. For example, if an investor's closely-held company stock is transferred to the insurance company, the insurance company can then be directed to sell the stock to a third party. The third party pays for the stock in cash, notes or other consideration. The insurance company invests the cash into stocks, bonds, mutual fund, etc., for the benefit of the investor. Foreign insurance companies are used, to provide almost unlimited flexibility in structuring the annuity contract. Investments can be held in either U.S. or foreign brokerage accounts, at the investor's option...