Charitable Remainder Trust (CRTs) and Charitable Lead Trusts (CLTs) require assets to be gifted irrevocably in exchange for a current tax deduction. A Private Placement Variable Annuity (PPVA) allows charitably inclined individuals to maintain ownership and control of PPVA assets throughout their lifetime while deferring the investment gains on those assets from taxation.
At death, if a private foundation or charity is designated as the beneficiary, deferred gains become exempt from income tax and the PPVA will not be subject to estate tax. This constitutes a tax-efficient means of giving assets away to charity without losing control during your lifetime.
Learn more about PPVA here or contact us to discuss implementing a charitable giving strategy today.
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This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor. We are not a law firm or a substitute for a law firm or an attorney. We do not provide legal advice of any kind or legal strategies, opinions or rights. Private Placement Life Insurance and Annuities are unregistered products and are not subject to the same regulatory requirements as registered products. As such, Private Placement Life Insurance and Annuities can only be offered to accredited investors or qualified purchasers as described by the Securities Act of 1933.
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