Examples of how a TriCap policy has been used to solve client problems:
Mr. V Singh
Mr. V Singh is a 62 year old Indian National who has lived for the past 25 years in Dubai where he has built and owns a building material supplies business which has prospered during the surge in building activity from the early 1990’s. Mr Singh is well known in the Indian local community and claims to have supplied materials to more than 30% of the towering buildings which dominate the Dubai skyline.
During his successful business years, Mr. Singh has used his generated wealth to invest in a diverse portfolio of holdings ranging from overseas property in safe property markets such as the UK and France, collective investment schemes, direct equity holdings in listed and private company shares, and commodities.
To date these have been managed by a close friend who is a senior manager at Emirates Investment Bank (“EIB”), an independent private bank in Dubai.
Mr. Singh has reached a stage in his life where he wants to find a way of handing the portfolio of assets to his heirs whilst protecting the lifestyle of himself and Mrs. Singh. Of course, security of the assets was a principle concern and maintaining the holdings in his private company shares was also of prime importance.
Another major consideration was that he did not wish to in any way prejudice his relationship with his private banking friend nor diminish his standing in the local Indian community, both of which removing his assets overseas could result in doing.
After consulting with his Emirates Investment Benk friend, he discovered it was possible to achieve all these objectives. the simplest way of meeting his goals was to effect a single premium life assurance bond with TriCap Assurance SPC in The Caymans Islands for US$30 million. His friend explained that Tricap could accept an in-specie transfer of his existing assets plus a cash float to meet charges.
TriCap would provide the insurance company wrapper which would transfer ownership of his portfolio of assets to TriCap Assurance SPC with no possibility of the assets being lost because of any financial difficulties which might affect the insurer in the future. The Cayman Islands Segregated Portfolio Regulations would ensure his assets would be protected from any financial difficulties affecting the insurer or other assets held by the insurer.
Mr. Singh decided he would also like to build life assurance into the product so that, on his death, his beneficiaries could enjoy, not only the wealth that his business life and investment decisions created, but also surplus funds worth a further US$10 million above his investment. He would stipulate that the enhanced sum would be a charitable donation in his name to the poor of the Indian State from which he originated. TriCap Assurance SPC established the bond on the basis of an additional US$10 million sum assured.
The liquid assets and private company shares now held by TriCap could, by delegation, be held by EIB so his friend would continue to provide the custodial and investment management services he previously offered to Mr. Singh, keeping his friend and the bank happy with their client relationship. In the event that Mr. Singh would prefer the assets held by a non Dubai resident bank, TriCap could offer an introduction of EIB to a Swiss based bank where custodial fees could be shared and the investment management continue with EIB through the Swiss Bank account held in its name.
Mr. Singh, could relax knowing that his assets were protected, investment growth and income were not subject to any taxation, he controlled distributions during his lifetime, he controlled beneficiary appointments throughout the rest of his life ensuring he could ensure the eventual claim benefits would be paid to his intended heirs, his assets were under the continued supervision of his friend at EIB, and everything was protected from creditors.
Mr. A Jones
Mr. A Jones is an Englishman who created, marketed and distributed a unique investment concept which proved attractive to many small family office owners as a proportion of their core investments.
Mr. Jones was sufficiently successful that he could appoint others to run his concept and could relocate with his wife, 2 children from the marriage, and 2 further step children from his wife’s former marriage, to any overseas location to enjoy his wealth and improved weather. He chose to live in Singapore from where he maintained a distant watch on the UK based business he had established.
Whilst in Singapore Mr. Jones continued to accumulate wealth and diversified his holdings in many different locations around the world. However, his marital relationship deteriorated whilst the family were overseas.
To smooth relationships Mr. Jones was obliged to repatriate to the UK where his tax position became extremely complicated regarding both income and investment gains and his continuing relationship with his wife came further into question.
To simplify his life and investment arrangements, Mr. Jones transferred his liquid and privately owned shares plus a considerable cash sum in total worth £3 million into a TriCap Assurance SPC life bond, appointing his private bank as the custodian and manager of his portfolio now held within the TriCap wrapper. He elected to have a further £6 million life cover sum assured in the contract.
Mr. Jones recognised that longer term residence in the UK may not be his chosen option and has bought a Monaco apartment for the long term.
This step greatly simplified the administration of his portfolio, held assets in a tax advantaged environment, and protected his assets under the Cayman Islands Segregated Portfolio legislation.
Furthermore, his assets were managed by his private bank, an institution he trusted, the assets were creditor free, his life cover protection needs were in place, and he would have complete control over beneficiary appointment in the future.