Benefits
Depending on the intermediaries identified client needs, a range of potential benefits will arise. The following can certainly apply as standard but there may be additional features that you, as intermediary, will require to meet local residential requirements.
Estate Planning
TriCap’s insurance solutions can be tailored to determine the sum assured required; when, how and to whom the wealth should ultimately be distributed, and to efficiently manage complex situations. Beneficiary nominations can be used to override any local forced heirship or family disputed rights and to operate entirely outside the client’s will where specific provisions may be arranged.
In the event of death, it provides the beneficiaries with a cash injection to bridge the gap until the estate is settled and/or to pay any applicable inheritance tax.
Asset Protection
TriCap’s life assurance contracts offer protection against claims from third parties as insurers are obliged to pay the beneficiaries even against the claims of creditors and legal heirs.
The assets in the insurance contract are protected from any creditor of the insured. Assets’ protection achieved through strict legal “segregation of funds” requirements established by the The Cayman Islands Insurance Act, 2010 as amended and which came into force on 1 November 2012.
Tax Efficiency
TriCap does not give individual taxation advice to any intermediary or their clients. Any comments we may make are generalised summaries and must not be interpreted as advice.
As opposed to tax optimisation schemes, TriCap’s assurance solutions are a recognised tool which provides personal income tax and wealth tax deferral in most countries during the lifetime of the policy.
Partial withdrawals and surrenders are often taxable albeit only on realised capital gains within the contract. When the insured event takes place, the proceeds received by the beneficiaries are likely to be tax efficient or exempt.
A life insurance policy is the preferred vehicle by a number of governments to incentivise long-term savings. This makes it a wealth panning tool which is globally accepted.
During the term of the Cayman Islands based TriCap policy:-
- No investment restrictions imposed by law, including illiquid assets but some restrictions may be imposed by TriCap to protect the policyholder.
- TriCap becomes the owner of the assets in the policy
- Full protection in case of litigation (divorce, family dispute, etc.)
- Tax-free growth of assets in policy (capital gains as well as income)
- Transparency
- Right to information at any time
- No tax in policy / tax-free reinvestment
- No reporting obligation for the insurer in event of a claim / pay-out
- Succession planning / pre-defined beneficiaries changeable on policyholder’s request at any time
- Discretion / Protection from third party access to assets
- Assets segregated from those of the insurance company and the other clients
Investment Flexibility
TriCap’s insurance solutions can hold a broad variety of assets, including unquoted assets like real estate, operating companies, and artwork to name a few. These assets enhance diversification of the portfolio and potentially bring higher returns.
However, TriCap reserves the right to conduct its own due diligence on unquoted assets to ensure these do not include the sort of problematical assets that have been miss-sold in recent years to many investors world wide. Acceptable unquoted assets are likely to be established trading companies long known to, or already held by, the client rather than speculative investments recommended to the client by the introducing intermediary.
The investment flexibility can be combined with additional life cover option providing the lesser of a multiple of 5 times the invested amount subject to a ceiling of US$10 million including the invested premium.
Simplified Reporting
TriCap’s clients can diversify countries and assets exposure as well as channels used to invest their wealth without the need to file complex declarations which are often required when clients directly hold offshore investments.
Because assets are held by third party custodians for the benefit of TriCap Assurance SPC as opposed to held directly by the client, the need for complex reporting is avoided.
Safeguarding International Clients
TriCap Assurance solutions can be designed, and further adapted as clients and/or their beneficiaries relocate from country to country, to meet the local requirements of the jurisdiction(s) involved.
Certain taxes applicable in some countries to financial assets held by resident high net worth clients when moving abroad, are generally not applicable with respect to the value of the life assurance contracts.
Clients from just about any country may apply for and hold TriCap Assurance SPC, including US Citizens, although US Citizens will be subject to specific requirements regarding investment range, reporting and legal requirements.
TriCap Assurance SPC are FATCA and CRS members, we collect and report data concerning each policyholder to its country of residence if this country is also member of FATCA or CRS