In order to obtain an even stronger structure for asset protection purposes, we propose a solution based on the combination of a Cyprus International Trust (CIT) and an Insurance Wrapper which is basically a life assurance policy (Proposed Solution). In accordance with our Proposed Solution, a trust will be settled and the trustee of such trust (Trust and Trustee respectively) will purchase an insurance wrapper with the trust funds. The Trust will be both the holder of the insurance wrapper (via its Trustee) and the beneficiary of such insurance wrapper. When the policy matures, the proceeds will be paid to the Trust and the Trustee may then distribute to the beneficiaries of the Trust in accordance with the relevant terms of the trust deed.
In addition the UK ‘non-doms’ can benefit from the creation of an offshore protected trust as suggested above since they can convert all of their non-UK based assets into investment bonds and/or re-assign their worldwide assets to the trust under the Trustee’s management and administration.
In addition, such proposed solution will obtain a tax deferral on the income generated by the saving component of the insurance wrapper and will allow the trustee to report and pay the applicable taxes only when the policy underlying the insurance wrapper matures.
For more information on asset planning optimization for UK ‘non-doms’ please contact Mr. Paris Hadjipanayis at [email protected]
