Definition
Trust-Owned PPLI
A PPLI policy owned by a properly designed irrevocable trust so the death benefit passes outside the taxable estate.
Full definition
PPLI is frequently owned by an Irrevocable Life Insurance Trust (ILIT) or dynasty trust. When properly structured — with the trust as owner and beneficiary, and premiums funded via annual exclusion gifts or Crummey powers — the death benefit is generally excluded from the insured's taxable estate under §2042.
Related terms
PPLI (Private Placement Life Insurance)
A privately negotiated variable universal life insurance contract offered only to Accredited Investors and Qualified Purchasers.
Frozen Cash Value Policy
A PPLI variant designed so that the policy's cash surrender value is deliberately minimized, often for gift, estate, and reporting purposes.
Availability, tax treatment, and policy design depend on jurisdiction, carrier, investor qualification, and applicable law. simpleppli.com provides general educational information only — not tax, legal, insurance, or investment advice. Consult qualified tax counsel, insurance counsel, and licensed insurance professionals before implementing any PPLI structure.