How to ensure that your wealth is well passed on to the next generation?

Mr & Mrs Zhang are living in China with two children, the elder one is studying in the US whilst the younger one  is planning to study in Europe at a later date. They have properties and banking assets in many places around the world and are in the process of obtaining a Golden Visa in Portugal, as part of the European Schengen Area, to enhance their global mobility. Mr & Mrs Zhang are worried about their children encountering difficulties in dealing with international inheritance rules and tax systems.Rosendo Guimarães da Costa

Objectives:

• Exclusive access to tailor made investment strategy ;
• An internationally recognized succession plan to ensure that wherever the parents and children live the legacy can be passed on easily, smoothly and safely:
• Certain liquidity for future use:
• A centralized report on the assets under different banks in different countries.

Solution:

Mr & Mrs Zhang subscribe to a Private Placement Life Insurance (PPLI) with cash and bankable assets forming the premium. Both are named as life assured and their children as beneficiaries.

Result:

• Mr & Mrs Zhang can withdraw partial funds latterly under PPLI in order to buy a house for their elder child in US; 
• Family relationship is harmonized by a clear straight-forward succession structure;
• Their children can easily prove their rights as beneficiaries, regardless the residence and nationality, receiving the policy and proceeding quickly and simply;
• The Policy portfolio benefits from long-term tax deferral.

What is Private Placement Life Insurance (PPLI)/ Unit-linked Life Insurance?  

PPLI is well established proven internationally recognized instrument with effectiveness over many generations. Overall PPLI is unaffected by regulatory changes and can accommodate relocation within Asian, to Europe or the US.

PPLI is a contract between an insurance company and an individual and dependent on the duration of human life/lives. Payment upon last death of life/lives assured consisting of the portfolio value and the additional fixed insured amount. Withdrawal, surrender and modifying the beneficiaries are feasible during the PPLI contract.