Tritium Private Wealth Strategies

Master Planners for Your Financial Future

Tritium Private Wealth Strategies leverages every possible tool, including estate, business succession, and executive benefit planning, to protect wealth over very long periods. Thanks to expertise in accounting, legal regulations, and financial management, we are able to carve out unique paths that avoid taxation pitfalls and other risks to securing wealth.

Tax Efficiency for U.S. Tax-Exempt Institutional Investors


Quentin C. Sturm

Quentin C. Sturm, J.D., CPA

Quentin, a former national director of the estate planning services unit of Coopers & Lybrand (now owned by PricewaterhouseCoopers), is a highly respected leader in the financial services industry. With over 40 years in the legal and accounting disciplines, Mr. Sturm is an invaluable partner on any team, adding sophistication and a wealth of advanced financial planning knowledge.

Robert J. Bagonis

Robert J. Bagonis, Jr.

Robert specializes in quantitative analysis, financial modeling, and integrated insurance design. He was the youngest manager and senior strategist of the advanced sales team for one of New England Financial’s largest agencies. He is uniquely qualified to provide a broad spectrum of financial planning options, including premium financing, COLI, supplemental retirement income, and cost recovery. Robert has established and trusted relationships with all major insurance carriers.

Premium Financing is a financial planning tool that Tritium utilizes to assist qualified insured individuals in overcoming the challenges in funding large life policies. Our model alleviates that burden by activating a third party lender to finance the purchase.

Why Do You Need Premium Financing?

The value of life insurance for estate liquidity, protection planning, business coverage, or as an alternative asset class is naturally weighed against the capital or cash flow required to support the associated premium payments. High net worth individuals will often forgo the purchase or acquisition of needed insurance because of age and underwriting requirements that make premiums cost prohibitive or to preserve cash flow and capital for other important projects or investments

Why Should You Finance Life Insurance Premiums?


Most self-made millionaires are comfortable leveraging their assets and have used that strategy to create wealth. Premium finance permits clients to leverage their current assets and the policy's cash surrender value to obtain the coverage they need.

Tax Savings

Clients can significantly reduce gift and estate taxes by paying interest instead of premiums and structuring ownership of life insurance products properly. Premium financing can also help clients use more of their annual gifting exclusions, rather than tapping prematurely into lifetime exemptions.

Retained Capital

Many high net worth clients earn double-digit returns on their investments, be it in their business, real estate, or other investments. Premium finance allows those clients to keep their money working for them in those high return asset classes.

Increased IRR

Utilizing premium finance reduces client outlay in the early years thereby increasing long term Internal Rate of Return (IRR).

Product and Design

Our designs combine properly structured preferred loans with non-correlated fixed insurance products. The reward of a properly designed life policy is the spread between the loan rates and the crediting rate of the policy. A healthy spread allows for the purchase of a large policy using significantly less out-of-pocket capital than paying for the full premiums through traditional means.

Overfunded Whole Life and Indexed Universal Life (UL) are currently the most popular products for financing today and for good reason. Whole Life offers the benefit of consistent dividend crediting year after year, albeit with lower returns (though on par with tax-free bond portfolios). Indexed UL (IUL) is driven by market performance but not directly invested in the market. IUL generally tracks an index (such as the S&P 500) and will credit the policy if there is a gain in the market while providing downside protection in the form of a floor (0-1%) if there is a drop in the market.

Our design generally features a minimum of paying 5-10 years of contributions (at least the interest), accruing interest if necessary. Then, in year 11+, policy surrender value is used to pay loan interest and principal over a period of time. Policy and loan review on an annual basis is required to ensure the success of the design, but a loan can be managed effectively as long as the policy growth can at least pay the loan interest year to year.

Lenders, Rates, and Collateral

Nearly all major banks compete in the premium finance space, even if they don’t advertise it. We work with our clients’ existing banking relationships or shop for other lenders for the best possible rates and terms. Generally, we target jumbo loan rates based on LIBOR (London Interbank Offered Rate) plus a spread from a lender.

Collateral requirements will vary by lender, financial condition of borrower and the negotiation process with the lender. In general, assets that are used for collateral include:

  • Cash and money market accounts
  • Non-Qualified securities subject to discount (approximately 50%)
  • Unencumbered real estate subject to discounts (50-70%)

Depending on the lender, other assets may be acceptable such as accounts receivable or annuity surrender value.

What Are the Benefits of a Sound Succession Plan?

  • Ensure a proper valuation of business interests, reducing the possibility of conflict between successors
  • Drastically reduce the cost and time required for settlement of the deceased's estate
  • If properly funded, provide cash flow for operations when the business needs it the most — potentially preventing the forced liquidation or sale to third parties
  • Eliminate conflicts between active and inactive children
  • Ensure ownership remains within your bloodline
  • Peace of mind

Planning Today Avoids Problems Tomorrow

Business owners seeking a smooth and equitable transition of their interests should seek a competent, experienced team to assist them in this matter. If your objective is to continue the business after death and not have it liquidated or sold to a third party, several options and considerations are possible.

Transition to Family or Family Sub-groups

  • Active vs. Inactive Ownership
  • Conflicting Interests
  • Estate Equalization
  • Criteria (Age, Education, Time in Business)

Transition to Employees

  • Retain key employees to protect institutional knowledge
  • Maintain an equitable balance between employee ownership and value passed on to heirs

Management Buy Out

A qualified team of hand-picked people can continue operations and handle the proper administration of the succession plan. U.S. tax-related withholdings and for handling all K-1s and state filings for the assets.

Basic Estate Plan Structure

  • Execute standard estate planning documents which include Wills, Power of Attorney, Health Care Proxy and possibly Trust.
    • Determine appropriate executor/trustees/fiduciaries.
    • Ensure utilization of estate tax exemptions such as creating Credit/Marital Trusts.
    • Determine dispositive provisions for heirs.
  • Consider Irrevocable Life Insurance Trusts (ILITs) to own insurance outside of your estate and include dynasty trust provisions to create wealth you can pass down to your children and future generations.

Establishing Vehicles for New Asset Acquisition

Consider the use of Beneficiary Controlled Trusts (BCTs) and Family Limited Partnerships (FLPs) to remove new ventures from your taxable estate while maintaining control of the asset.

Removing Highly Appreciable Assets From Your Estate

  • Leverage your lifetime exemptions to get assets out of your estate (note: in certain circumstances, appropriate discounts may be applied on transferred assets; please consult with your tax and legal advisor for further information)
  • Explore the use of various estate freeze techniques including:
    • Defective Grantor Trusts
    • Rolling Grantor Retained Annuity Trusts (GRATs)
    • Qualified Personal Residence Trusts (QPRTs)
  • Consider annual gifting to shift assets and use the available discounts to shift those assets in lieu of direct cash gifts

Establishing Vehicles for Philanthropic Objectives

Consider your charitable intentions and how you intend to fulfill these intentions. The following vehicles are often used to accomplish philanthropic objectives:

  • Family Foundation
  • Charitable Remainder Trust
  • Charitable Lead Trust

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