Austin
Achieving asset consolidation and long-term compounding growth through PPLI
Services Provided
Insurance Planning
Legal & Tax Structuring
Client Background
Austin is a successful Asian entrepreneur, married and father of two teenage children, currently residing in the UK. He sold his company two years ago, shortly after arriving in the UK. When he sold his company, he was unsure what he wanted to do next. As he would like his capital to keep growing, he invested in a diversified portfolio that includes private equity, funds, structured products, stocks and bonds.
Austin had been considering the use of a Trust for longer-term planning; however, factoring in the recent tax rule changes in the UK. Austin is seeking an alternative solution to a Trust that will help achieve the same efficiency.
Client’s Goals
Remain invested to achieve investment returns to preserve the value of his capital.
Ensure that his investments are tax-efficient and compliant with the local jurisdiction.
For now, Austin needs the ability to make withdrawals to meet annual living expenditure.
Streamline the management of his diverse and scattered portfolio.
Our Tailored Solutions
Having considered Austin’s desire for investment growth, tax efficiency and regular access to liquidity, Oakcean worked with a wealth planner and sought a Private Placement Life Insurance (PPLI) policy for Austin. Together with the insurance broker, Oakcean helped open the PPLI account with the chosen custodian and transfer in the existing portfolio from Austin’s own name.
Austin appointed Oakcean as the investment manager to manage the investment portfolio. His children were designated as the beneficiaries of the PPLI policy.
Outcome
The investment portfolio was consolidated under one policy, making it easier to manage and providing better privacy.
Within a PPLI, investment capital gains and income are rolled up on a gross basis.
Austin can withdraw up to 5% of the value of the original capital tax-free each year. He can use this to maintain his desired standard of living.
Upon the maturity of the policy, the assets are distributed directly to his children, ensuring smooth and efficient wealth transfer.
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