Welcome to the Family Office podcast. In this episode recorded live at our Beverly
Hills Investor Club Summit, we uncover how sophisticated investors use advanced
structures to protect and multiply their wealth, from tax -efficient life insurance
vehicles to global deal structuring. Let's dive in. Kind of pivoting.
There is a topic here of structures and strategies.
And so is there a particular investment structure.
have not had any clue in terms of really what the strategy is. So imagine if you
could take a life insurance policy, custom created, that is allowed to own
alternative investments, oil and gas, crypto, allowed to use what's called an in -kind
premium. So funding the policy initially with crypto, but that has already been
appreciated. Yes, there is absolutely a taxable event that has to be recognized but
imagine if you could take crypto at two million dollars and hoping that if Eric's
right and it goes to you know a million dollars a coin that you're now sitting on
20 or 25 million having that money grow inside a tax deferred vehicle of which a
life insurance policy is is exceptionally powerful and so if you can minimize or
defer the ordinary income and the capital gains and eventually if you structure it
properly and it can avoid a state taxes
you have investment law, you have tax law, you have estate planning,
and you have philanthropy covered all in one go. So you can put in any kind of
asset, ordinary income, capital gains, whatever you want. We swap it out with IUL.
So you put whatever you want in there, you take it out 98 percent income tax -free.
Wow.
Not everybody's thinking, huh? The doctor CPA? Yes, so there are a lot of wonderful
tax strategies. I will endorse both of those as a CPA.
I also focus a lot on residency and situs of the source of income.
So you have these vehicles, you have these structures, but I'm a resident of Puerto
Rico now. I'll endorse that as well. So be very careful what the character of your
income is and the source of your income when you're structuring and when you're
structuring these deals and you're picking and choosing. From a structural standpoint,
deal to deal, I'm involved in a lot of SPVs, structure them, of,
you know, that may be needed on a case -by -case basis. I also, because I have an
executive background, while I can't be everywhere, I do like to invest in direct
investments with an advisory share component. And in fact, one that I recently became
involved with was somebody that I met here and who presented here recently AI
brokers. So meet and mingle in the room because you meet some great connections and
opportunities.
Thanks for listening to our episode. Up next, we'll take a closer look at why so
many family offices are relocating to Puerto Rico under Act 60 and how it's changing
the landscape for family offices. Stay tuned.