Fine Art Financing
Whether you want to access the liquidity in your art collection or finance a new purchase for it, our lending specialists can help.
Adding a borrowing strategy to your estate plans can protect your heirs in the future—and your financial position today. For the executors of your estate, paying death taxes may precipitate a liquidity crisis—forcing them to hastily sell assets that would otherwise be inherited by your beneficiaries, or resulting in other undesired outcomes.
Life insurance premium financing can help you maximize wealth to your heirs and keep your legacy intact.
One way to protect future heirs is to insure your life so that, at your passing, estate taxes can be paid with the proceeds from a high-value life insurance policy. Typically, in such arrangements, the policy is held separate from the rest of the estate, in a trust.1
An insurance policy can directly benefit your heirs and other beneficiaries. The proceeds of the policy can be used to:
Many of our clients consider financing their life insurance premiums in order to reduce the gift tax implications of contributing assets to a trust.
Not surprisingly, putting such protection in place comes at a significant cost, in the form of annual policy premiums. As a result, many clients elect to finance those costs with a loan collateralized by the cash surrender value of the policy, in addition to marketable securities.
This approach has the added benefit of being tax efficient: the funds that the trust borrows to pay the annual premiums and interest expenses generally are available free of gift taxes.
Financing the cost of a high-value insurance policy can benefit you and ultimately your estate in many ways, now and in the future, by allowing you to:
A “carry” opportunity may exist as well: If the interest rate charged on the loan is lower than the rate of return earned on the cash value of the policy, there may be potential appreciation.
There are risks inherent in any borrowing strategy. These include interest rate
fluctuation, market volatility and the possibility of collateral shortfall, which may lead to a margin call. Before deciding whether to finance the acquisition of high-value life insurance by borrowing, we encourage you to discuss your objectives with your J.P. Morgan team as well as with your legal and tax advisors.
1Trust should be trusteed with an independent, non-subordinated party to avoid exposure to insurance contract indirect “incidences of ownership” rules set forth under IRS Sec. 2042.
Whether you want to access the liquidity in your art collection or finance a new purchase for it, our lending specialists can help.
Our lending specialists are an industry go-to for private aircraft financing. They‘re deeply knowledgeable about and connected to the aviation industry.
Life insurance is an important part of an estate plan. But the premiums can be high. We can help you with a borrowing strategy that works for your wealth plan.
Sports financing. Few do it, and fewer do it really well. Learn about our 20-year track record helping teams and owners access the financing they need.
We understand the personal benefits of owning a superyacht, as well as the beauty and craftsmanship it represents. As a recognized provider of yacht financing, we can assist you with your purchase of a new or pre-owned yacht, or unlock the liquidity in a yacht you already own.
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Contact us to discuss how we can help you experience the full possibility of your wealth.
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To learn more about J.P. Morgan’s investment business, including our accounts, products and services, as well as our relationship with you, please review our J.P. Morgan Securities LLC Form CRS and Guide to Investment Services and Brokerage Products.
JPMorgan Chase Bank, N.A. and its affiliates (collectively "JPMCB") offer investment products, which may include bank-managed accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC ("JPMS"), a member of FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states. Please read the Legal Disclaimer in conjunction with these pages.
INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED
Bank deposit products, such as checking, savings and bank lending and related services are offered by JPMorgan Chase Bank, N.A. Member FDIC.
Not a commitment to lend. All extensions of credit are subject to credit approval.