Eagle Rock | Greenberg & Rapp
Institutional Services
Insurance Solutions for Financial Advisors
Private Placement Life Insurance
An Institutional Asset Location Strategy for Tax-Efficient Wealth Transfer
PPLI is a non-traditional life insurance strategy designed to help mitigate the impact of taxation on highly tax-inefficient investment strategies. By utilizing a private placement contract, advisors can help qualified investor clients pursue tax-deferred growth on alternative assets and a stepped-up, tax-free death benefit for heirs.
Structural Differentiators
Open-Architecture Investment Options
Our platform provides a broad spectrum of more than 100 sub-account choices. This includes traditional low-cost funds, institutional hedge fund access, and the ability to utilize an Insurance Dedicated Fund (IDF) or SMA structure for precise asset allocation.
Institutional Pricing & Carrier Competition
We facilitate a competitive bidding process among top-tier carriers to help reduce the cost of insurance (COI) and administrative loads, increasing the percentage of premium directed toward the cash value for growth.
Flexible Funding & MPU Compliance
Premiums can be structured to satisfy Modified Endowment Contract (MEC) or non-MEC status based on the client’s tax goals. Typically designed as a multi-year funding plan (5–7 years), the structure allows for adjustments to accommodate liquidity events or changing tax environments.
Dynamic Rebalancing & Tax-Free Liquidity
The PPLI wrapper allows for the rebalancing of underlying assets without triggering realized capital gains. Clients can access the policy’s cash value through low-spread loans, providing a tax-efficient source of liquidity for lifestyle needs or additional investment opportunities.
Estate & Charitable Planning
Strategic Philanthropy: Integrating Tax-Alpha with Multi-Generational Legacy
For the ultra-high-net-worth client, charitable intent is rarely a standalone objective; it is a sophisticated component of the broader estate architecture. Our role is to provide the strategic framework that aligns philanthropic vision with rigorous financial engineering. We partner with you to navigate complex gifting regulations, helping to ensure tax efficiency while reinforcing the client’s long-term legacy.
Advanced Architecture
Strategic Grant-Making & Efficiency
Structure client income tax deductions by utilizing Donor-Advised Funds (DAFs) in conjunction with contribution bunching. This approach allows for an immediate upfront deduction, potentially offsetting high-income years, while providing the client with discretionary grant-making latitude over an extended horizon.
Charitable Remainder Trusts
Facilitate the diversification of highly appreciated assets without immediate capital gains recognition. By utilizing CRTs, advisors may provide clients or heirs with a structured income stream for a term of years or life, ultimately transferring the remainder to a designated 501(c)(3) to help reduce the taxable estate.
Private
Foundation Coordination
For clients needing increased governance and control, we provide technical support to integrate Private Foundations into the estate plan. This structure serves as a primary vehicle for multi-generational family leadership, active grant-making oversight, and high-impact legacy branding.
Qualified Charitable Distributions
Enhance retirement account efficiency for clients over age 70½ by directing Required Minimum Distributions (RMDs) directly to qualified charities. This strategy excludes the distribution from Adjusted Gross Income (AGI), providing a better tax result compared to traditional itemized deductions.
In-Depth PPLI Resources
Strategic Intelligence & Frameworks
These resources are designed to provide the clarity and depth of analysis necessary to evaluate PPLI as a foundational component of a visionary wealth architecture.
PPLI White Paper
CNBC PPLI Article
PPLI Video Explainer
PPLI Bloomberg Segment
Wall St Beat Segment
Magnastar Investor Portal
Advisor Relationships
Partnering For Better Client Outcomes
Greenberg & Rapp is a holistic wealth management firm specializing in insurance-based solutions. When we work with financial advisors, we create beneficial relationships that help increase total assets under management and achieve better client outcomes.
When we work with other private wealth advisors, we ensure that Greenberg & Rapp does not manage any client assets apart from those in the insurance solutions we collaborate on. We regularly partner with top private wealth firms to help safeguard client assets and improve their overall client experience.
Disclosures: (1) Securities offered through Raymond James Financial Services, INC., member FINRA/SIPC
(2)Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
(3) Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Greenberg & Rapp Company and Eagle Rock Wealth Management are not registered broker/dealers and are independent of Raymond James Financial Services.
(4) Private Placement Life Insurance (“PPLI”) and Private Placement Variable Annuity (“PPVA”) products are unregistered securities made available by Raymond James to eligible investors only. Such investors include “Accredited Investors” as defined under Rule 501 of Regulation D of the Securities Act of 1933, including “Institutional Investors” under FINRA Rule 2210(a)(4) and, in certain cases, “Qualified Purchasers” as defined in Section 2(a)(51) of the Investment Company Act of 1940. Prior to consideration, investors should carefully review the issuing insurance company’s Private Placement Memorandum (PPM) and all accompanying materials, including the investment risks described therein. These products may not be suitable for all investors.
(5) Private Placement Variable Annuity pre-death distributions in the form of partial withdrawals are considered a distribution from the policy and therefore could potentially cause a taxable event. The amount to be distributed from the contract will be on a “gain first” basis. Any built-up gain in the contract will be distributed first, and then basis will be distributed to the extent that the distribution amount exceeds the gain. Depending upon the policyholder’s tax status, the amount of gain that is distributed could be taxable at the policyholder’s income tax rate.
(6) Private Placement Life Insurance pre-death distributions in the form of partial withdrawals and policy loans are available from a non-MEC life insurance policy. Policy loans typically do not create taxable income. Policy loans, whether or not repaid, may have a permanent effect on a policy’s cash surrender value and death benefit. Partial withdrawals from a non-MEC are typically treated as non-taxable return of basis first and taxable gain second. However, please note that IRC 7702(f)(7)(B) specifies certain situations that may reverse this treatment for partial withdrawals made during the first 15 policy years.
Request a Private Briefing
Our engagements begin with a confidential consultation to align our resources with your family’s lifestyle and legacy goals.