Private Placement

Winged Keel Group is widely recognized as one of the leading experts in the structuring and administration of Private Placement Life Insurance and Annuity Investment Accounts. We currently administer over 200 Private Placement Life Insurance and Annuity Investment Accounts.

Ultra-affluent families utilize Private Placement Life Insurance and Annuity Investment Accounts to shield traditional and alternative asset class investments from current period taxation. These accounts can optimize after-tax investment returns, eliminate K-1s, enhance creditor protection, increase charitable bequests, reduce the reporting requirements for foreign financial institutions, and/or protect foreign wealth from U.S. income tax. Under most reasonable assumption sets, the incremental cost of the Private Placement Life Insurance or Annuity Investment Account is substantially lower than the cost of income taxes that would otherwise be payable on investment gains.

 		 

Private Placement Life Insurance Investment Accounts are complex and require customized structuring and significant ongoing administration.

  • Policy Structuring: The policy structuring often includes one or more strategically-timed changes, such as a reduction in the life insurance benefit or systematic withdrawals and policy loans that will take place many years after the policy is issued. Such changes cannot be scheduled for automatic processing by a life insurance company, therefore require the kind of administrative infrastructure that Winged Keel Group has developed.
  • Proprietary Reporting: Our proprietary reporting system allows us to consolidate the reporting for Private Placement Life Insurance Investment Account portfolios that access the capacity of multiple life insurance companies.
  • Accounting Services: Winged Keel Group also coordinates all money flows into and out of the account and among the Insurance-Dedicated Funds, reporting, and adjustments in the insurance benefits.

A Private Placement Life Insurance Investment Account can provide for the elimination of income taxes on investment gains within the account, even for asset values accessed during the insured's lifetime.