- Flexibility to suit many specific needs from inheritance planning to asset protection
- Cross-border expertise for tax-efficient relocation
- Stability and security of a Luxembourg contract
- Dedicated experts designing compliant and customised solutions for the LatAm market
In Latin America, most jurisdictions promote the use of and have a predictable and certain legal/tax treatment of life assurance policies for the policyholders and beneficiaries. Other investment vehicles such as trusts or foundations are usually not clearly regulated and their tax treatment remains uncertain in most Latin American countries. Therefore, our LatAm dedicated team of experts at OneLife can offer technical assistance in ensuring that the contract is fully adapted to the legal and tax requirements of the destination jurisdiction.
From an investment perspective, life assurance is an efficient wealth management tool (“Open Architecture” principle with multiple investment managers and custodian banks). Moreover, it offers great flexibility in terms of investment strategy and types of investments (hedge funds, private equity, etc.), as well as asset protection (Luxembourg “Triangle of Security”).
From an inheritance angle, life assurance allows free appointment of the beneficiaries with the possibility to change them at any time. In most LatAm jurisdictions, insurance proceeds are by default outside of the estate of the deceased. Furthermore, it is possible to rank the beneficiaries or allocate different percentages to each of them according to the wishes of the policyholder.
In terms of taxation, life assurance usually offers tax deferral, meaning that eventual gains areaccrued under the policy and not taxed directly in the hands of the investor. Depending on the LatAm jurisdiction, a life insurance policy may be an efficient tax planning tool for Inheritance, Gift or Wealth Tax if a proper solution is implemented.
At OneLife, we offer comprehensive solutions for wealth management including the acceptance of unlisted assets, supported by Luxembourg’s insurance regulation that allows a large range of underlying investments in internal funds. For many wealthy individuals, a significant part of their total wealth comprises unlisted assets which can be categorised into shares, debt instruments (including Securitisation vehicles), as well as Private Equity funds and Real Estate in multiple jurisdictions.
Our specialised Unlisted Assets Team has extensive experience in this sector and is able to manage these types of assets taking into account various aspects such as valuation, legal, compliance, governance, etc.
We ensure that the proposed solution is best suited to our client’s needs.
The Unlisted Assets Team also performs on-going monitoring and due diligence of the assets to ensure the investments remain compliant and suitable over time. This includes reviewing the price of the asset in accordance with market conditions and any changes within the unlisted company.
Contact our LatAm team