The Role of Life Assurance and Trusts with Inheritance Tax Planning ASSET PROTECTION SYMPOSIUM : THE IMPACT OF LAWS ON INHERITANCE Nexus Insurance Brokers are proud to be sponsors of this symposium

2 W 1. Who are Nexus Insurance Brokers ? L 2. Life assurance & correct trusts P 3. Products for reducing the IHT A A practical checklist Agenda

3 Nexus Insurance Brokers O One of the largest regulated, independent insurance brokers in the UAE F Full financial planning services O Over 20 years experience in the Gulf E Expansion plans for offices in Kuwait and Lebanon

4 Life Assurance and Trusts T The Objective: Proceeds of Life Assurance should be: 1.paid out quickly and effectively 2.paid to the appropriate beneficiaries 3.be structured to reduce any estate taxes (Inheritance Tax or IHT) T The Solution ? = SET UP A CORRECT TRUST

5 Advantages of Trusts F For 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

6 A Properly Set Up Trust D Discretionary 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

7 Nomination of Beneficiaries F Features: 1. names beneficiaries & their % of benefit 2. avoids probate P Potential Issues: 1. policyholder domicile 2. changes in family circumstances 3. succession rules 4. assignment of a policy from: International Protector Middle East Friends Provident International Limited

8 Products for Reducing IHT I Insure the Liability: 1. Whole of Life Policy 2. Term Assurance W Which Trust? 1. Gift Trust 2. Loan Trust 3. Discounted Gift Trust 4. Excluded Property Trust

9 Friends Provident International Limited from: UK Inheritance Tax Guide The Trust Planning DecisionTree

10 Checklist 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

11 Thank You for Your Attendance F For more information and to arrange advice please see me today or me