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Frozen Cash Value Life InsuranceFrozen Cash Value Life Insurance

A sophisticated tax planning solution for ultra-high-net-worth taxpayers

Gerald R. Nowotny, Founder/Principal/Managing Partner

June 29, 2012

41 Min Read
Frozen Cash Value Life Insurance

 

Frozen cash value (FCV) is best known as a private placement flexible premium variable adjustable (universal) life insurance policy that’s issued by offshore life insurance companies domiciled in tax haven jurisdictions such as Bermuda or the Cayman Islands. In 1995, when Craig Hampton developed FCV insurance, the private placement life insurance (PPLI) industry for high-net-worth individuals was in its infancy. Awareness among client advisors was nonexistent.1 The passage of time and growth of the PPLI industry for FCV life insurance has increased awareness of the product. However, it’s virtually unknown by tax attorneys and CPAs, as well as life insurance agents with wealthy clients. The evolving tax landscape suggests that FCV is a p...

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About the Author

Gerald R. Nowotny

Founder/Principal/Managing Partner, Long Gray Line Consulting (LGL), LLC


 

Gerald Nowotny is Founder and Principal of Long Gray Line Consulting (LGL), a specialty consulting firm specializing in tax planning uses of life insurance and annuity contracts, captives, and advanced planning programs for high net worth clients and institutional investors. He has 23 years experience in advanced life insurance tax planning, private placements annuities and programs. 

Mr. Nowotny’s background includes experience with Deloitte & Touche, Marsh McClellan Financial Services, Mass Mutual and the Philadelphia Financial Group/AGL Life Assurance Co., creating private placement life insurance and annuity products. 

Mr. Nowotny earned a J.D. and LL.M. from the University of Miami and a BS from the United States Military Academy at West Point (1982). He served on active duty for five years leaving the Army as a Captain. Mr. Nowotny was a Spanish and Portugese major and had the highest level of non-native speaking proficiency in both languages based on the Department of Defense language tests.   He is a member of the Florida Bar Association, a Certified Financial Planner, Chartered Life Underwriter and Chartered Financial Consultant.

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