Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Friday, June 30, 2017

New-ish Tax Planning Instrument Gathering Billions

Wall street crash 1929The use of insurance dedicated funds (IDFs) is growing more popular among the wealthy as a means to avoid taxes. IDFs have been around since the 2000s and they are typically managed by hedge funds, including Paulson & Co. and Millennium Partners. The insurance wrapper on these funds prevents taxes on death benefits and avoids capital gains taxes. This tremendous advantage of tax-free growth appeals to investors for estate planning purposes. Despite the negative connotation associated with hedge funds, the use of the IDF as an investment vehicle is expected to become increasingly prevalent.

 See New-ish Tax Planning Instrument Gathering Billions, Barron’s, June 28 2017.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.


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