Partners buy life on each other; death triggers tax-free buyout of deceased's shares.
In a cross-purchase buy-sell, each partner owns a policy on the others. On a partner's death, surviving partners receive tax-free death benefit and use it to buy the deceased's shares from the estate — surviving partners get a stepped-up basis in acquired shares (huge advantage vs entity-redemption). Best for 2–3 owners; for 4+, use a trusteed cross-purchase or partnership-owned structure.
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Overfund whole life, borrow against cash value at 5–6%, arbitrage into real estate.
Overfund IUL to MEC line — tax-free retirement income via policy loans.
Business pays premium, executive gets death benefit — pennies on the dollar of tax exposure.
Wrap hedge funds/PE inside a tax-free life policy — no LTCG, no ordinary income.
Borrow at SOFR+1.5% to pay life insurance premiums, arbitrage against policy crediting.
Business pays deductible premiums to owner-controlled captive — up to $2.85M/yr tax-free receipts.
Layer umbrella and excess policies for $5M–$50M liability coverage at $500–$5K/yr.
Take higher deductibles on rarely-claimed policies; pocket the premium savings.