Silicon Valley billionaire buys record life policy

[Hum]

SAN FRANCISCO ?  An unnamed Silicon Valley billionaire has purchased the world's most valuable life insurance policy.

The man who cobbled the deal together said Saturday that it took seven months and 19 insurance companies to put together a deal that surpasses a $100 million policy sold to Hollywood mogul David Geffen in 1990.

"No one company can afford to take a $201 million hit," said Dovi Frances, the financial adviser who represents who he calls a "well-known billionaire."

The Guinness Book of World Records announced the surpassing of Geffen's record on Thursday. Guinness officials spent about three months reviewing records, Frances said.

Frances said the billionaire purchased the insurance to help his heirs avoid paying a 45 percent inheritance tax upon his death. Frances also said, generally speaking, that many super-wealthy people are taking out big loans because interest rates are low. Those loans are to be paid in full immediately upon death, further cutting into a billionaire's cash holdings.

Forbes reports that California can lay claim to 111 billionaires, with about a third of them considered high-tech investors.

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[duoi Veteran]

45% inheritance tax!?

 

Taxes in the US are ridiculous.

[Hum]

Hope he remembers me in his Will. :p