Telephone: (+350) 200 42686
Innovative and impartial international tax planning, company, trust and pensions services in Gibraltar for private clients, their businesses and their families.
Tax Planning with Life Assurance
Life insurance can provide you with an excellent vehicle for tax planning, offering the following key benefits:
- Wealth accumulation: your assets held within an insurance policy can often grow income tax free, and you can sometimes withdraw funds tax free. In addition, in certain countries, you can obtain deductions for income tax purposes for life insurance premiums.
- Contract versus ownership: as the holder of a life insurance policy, you have a contractual entitlement to benefit from the policy and do not own the assets contained within the policy. The implications of this can be very beneficial; for example, most high-tax jurisdictions have anti-avoidance legislation regarding ownership through entities in low, or no, tax countries. Such legislation does not apply to benefits which you may enjoy through a contract.
- Wealth transfer: life insurance can be an efficient way of transferring assets on death, because such policies can fall outside any forced heirship laws. In certain countries, such policies can benefit from a special treatment on your death when compared to other assets.
- Wealth preservation: in many countries, life insurance policies benefit from asset or creditor protection. This enables the assets you hold in the policy to be protected from any claims of future creditors.
To discuss how we can help you plan your tax through life insurance, please email us or telephone us on Gibraltar (+350) 200 42686 and ask for a member of STM Life.
