Economics

Insurance Is the Hot New Way to Avoid Taxes

Insurance dedicated funds gaining popularity among wealthy
JPMorgan, Goldman Sachs touting tax-free investments

Deadline For Filing 2013 U.S. Taxes April 15
Photographer: Andrew Harrer/Bloomberg

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By Sonali Basak and Tom Metcalf

June 28, 2017 at 9:00 AM UTC

This article is for subscribers only.

The new hot thing in tax avoidance has a boring old name: insurance dedicated funds.

Introduced in the 2000s, IDFs have become so mainstream that banks such as JPMorgan Chase & Co. and Goldman Sachs Group Inc. are offering them. Hedge funds like Paulson & Co. and Israel Englander’s Millennium Partners LP have been managing them for years.