Client Solutions

Ultra High Net Worth Estate Planning

Wealthy individuals can pass on their wealth to their children in several ways but only a few of those tools can be implemented with reduced tax consequences. Protecting clients from estate taxes, only to expose them to income taxes can cause UHNW clients more harm than good. Considering both income and estate tax consequences prior to implementing an estate plan is crucial.

Estate planning and wealth transfer
Settlements Policy

Private Placement Life Insurance

Private Placement Life Insurance is a tax-efficient tool used by ultra high net worth clients to grow their monetary wealth at a reduced cost. The individual’s assets are taken out of their taxable estate and placed in a life insurance (PPLI) policy. Within the PPLI vehicle, high tax costs are replaced with lower insurance costs thereby reducing the drag. This increases the client’s long-term after-tax wealth for themselves and their heirs.

Whole Life Insurance

Whole Life Insurance is a form of permanent life insurance that provides a great way to invest in long-term bonds tax-free. Clients can expect to earn a return of 4%–4.5% tax-free over the long term from it if structured properly. The premiums in a Whole Life Policy remain the same every year and guarantee to keep the policy in force which is why it is the safest form of permanent life insurance.

Estate planning and wealth transfer
Selling a client’s life insurance policy

Guaranteed Lifetime Income

Guaranteed Lifetime Income Products ensure a steady income throughout your lifetime. This tax-efficient, guaranteed income stream serves as a safeguard against market downturns and the potential of exhausting funds during retirement. At present, clients have the opportunity to receive payout rates ranging from 10% to 13% of their initial investment.

Selling a Client’s Life Insurance Policy for Cash

Helping seniors liquidate an investment in a life insurance policy. Many advisors think that the only way for a senior to exit a life insurance policy is for them to cancel the policy and take the cash surrender value. Most advisors don’t realize that some of these policies could be sold on the life settlement market for 3-4 times the cash surrender value.

We help RIAs sell these policies in the life settlement market without paying the typical life settlement broker commission of 15%-30% of the offer price. Often times we can transact these cases at 5% or less of the total offer price.

This leaves more of the proceeds for the policyowner.

Selling a client’s life insurance policy
Investing in life settlements

Life Insurance Policy Review

An independent policy review can help to determine if an insurance company is overcharging the client or if there are more cost-effective policies on the market. Colva often finds errors in adhering to the terms of policy contract, either in error or deliberately, and may also engage in deceptive practices without a forewarning to the policy owner. Such practices can lead to a significant loss to the policy owner.

Life Settlement Valuation

A life settlement is the sale of in-force life insurance policies to third-party investors. For the investors, it is important to determine the full value of a life settlement policy or a portfolio of policies by experts. The key to doing this is to properly optimize (or minimize) the premiums of the policies, to determine the survival probabilities of the insureds of the policies and to determine the current market discount rate.

Investing in life settlements

Fund And Accounting Administration

Colva handles the accounting work of funds containing over $60 million in assets. Colva undertakes the activities of bookkeeping, reporting, creation of statements and other miscellaneous tasks such as engaging directly with other Fund Administrators, Accountant and Auditors that helps in keeping the administration of the funds smooth and efficient.