
Executive Bonus Planning Using PPLI in a Trust-Owned LLC: A Powerful Wealth Strategy for High-Income Executives
This in-depth guide explores how high-income executives can leverage Private Placement Life Insurance (PPLI) inside a trust-owned LLC to defer taxes, avoid estate inclusion, and bypass the $1M compensation deductibility cap. With detailed case law, IRC codes, step-by-step structuring, and planning scenarios—including executive bonus plans and buy/sell agreements—this article provides advanced strategies for tax-efficient wealth preservation. Learn how to implement these structures using South Dakota trusts and Bermuda PPLI while navigating investor control, gift tax exposure, and California fiduciary tax traps.