Private Placement Life Insurance (PPLI) is the crown jewel of insurance planning for the ultra-high net-worth single-family office. However, there remains an asymmetry of knowledge regarding the arrangement between ultra-high net-worth (UHNW) and high net-worth (HNW) business families. Due to recent tax changes (2017 Tax Cut and Jobs Act) and significant government economic stimulus related to COVID-19, a unique application of PPLI for HNW with an alternative policy structure, which we call the Reverse Endowment Model, may create an opportunity for business families to increase their planned giving and still pass the same amount of inheritance assets to their heirs. The research focuses on identifying an unrecognized opportunity among HNW business families and an analysis of how the arrangement is best architected. A cross-generational quantitative analysis illustrates the feasibility of the conceptual model. Using surveys and interviews, I further establish the market demand and supply of this unique and innovative estate planning approach.
Library of Congress Subject Headings
Life insurance; Dynasty trusts; Family foundations; Private equity
Date of Award
George L. Graziadio School of Business and Management
Gray, Kristofer R., "The reverse endowment model: increasing a business family’s philanthropic planned giving through private placement life insurance and dynasty trusts" (2021). Theses and Dissertations. 1433.