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Blackstone’s Tax-Free Hedge Fund Pitch Draws Wyden Scrutiny (2)

Aug. 15, 2022, 4:22 PM

Senate Finance Committee Chair Ron Wyden is probing the use of private placement life insurance among wealthy Americans to avoid taxes, starting with a request for information from Blackstone Inc.’s Lombard International.

Private placement life insurance, or PPLI, is a decades-old strategy that has been gaining popularity among the super-wealthy as a way to protect their fortunes from income and estate taxes. A key perk is that the vehicles, which typically require a minimum investment of at least $2 million, can hold hedge funds and other financial products that would otherwise be taxed at the highest rates.

“I am ...