The Role of Life AssuranceThe Role of Life Assurance andand Trusts Trusts withwith Inheritance Tax Planning Inheritance Tax Planning

ASSET PROTECTION SYMPOSIUM :

THE IMPACT OF LAWS ON INHERITANCE

Nexus Insurance Brokers are proud

to be sponsors of this symposium

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1. WWho are Nexus Insurance

Brokers ?

2. LLife assurance & correct trusts

3. PProducts for reducing the IHT

AA practical checklist

AgendaAgenda

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Nexus Insurance Brokers Nexus Insurance Brokers OOne of the largest regulated,

independent insurance brokers in the UAE

FFull financial planning services

OOver 20 years experience in the Gulf

EExpansion plans for offices in Kuwait and

Lebanon

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Life Assurance and TrustsLife Assurance and TrustsTThe Objective:

Proceeds of Life Assurance should be:1.paid out quickly and effectively2.paid to the appropriate beneficiaries3.be structured to reduce any estate taxes

(Inheritance Tax or IHT)

TThe Solution ? = SET UP A CORRECT TRUST

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Advantages of TrustsAdvantages of TrustsFFor the proceeds of a Life Policy:

They are paid:

1.to the Trustees upon death

2.without the need for a grant of probate

3.outside your estate for IHT purposes

4.if the correct trust is used - within your complete control – there is flexibility of the timing and destination of proceeds

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A Properly Set Up TrustA Properly Set Up Trust

DDiscretionary Trusts

Features:

1. no beneficiary is entitled to the proceeds

2. Trustees have discretion in who receives the benefits

3. at least two Trustees in the trust

from: Protection Trust for an existing policy(EP)Friends Provident International Limited

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Nomination of Nomination of Beneficiaries Beneficiaries

FFeatures:1. names beneficiaries & their % of benefit 2. avoids probate

PPotential Issues:

1. policyholder domicile2. changes in family

circumstances 3. succession rules4. assignment of a

policy from: International Protector Middle East

Friends Provident International Limited

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Products for Reducing IHTProducts for Reducing IHT

IInsure the Liability:1.Whole of Life Policy

2. Term Assurance

WWhich Trust?1.Gift Trust

2.Loan Trust

3.Discounted Gift Trust

4.Excluded Property Trust

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Friends Provident International Limited

from: UK Inheritance Tax Guide

The Trust The Trust PlanningPlanningDecision Decision

TreeTree

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Checklist for TrustsChecklist for Trusts

Life Policy in trust?

Nomination of Beneficiaries Form completed?

Correct Trust chosen?

Does home Life Policy cover while away from home country?

Letter of Wishes created? (optional) Nigel Nonkovic of Nexus Insurance

Brokers can assist & advise on all of these issues

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Thank You for Your Thank You for Your AttendanceAttendance

FFor more information and to arrange advice please see me

today or email me nigel.nonkovic@nexusadvice.com