We welcome you to participate in this important thread of discussion concerning private clients and consultants involved in the business of organizing high-net-worth personal wealth in Switzerland. In the interest of cross-border tax efficiency and long-term asset protection, regular insurance products seldom meet advanced goals of wealth protection. Thus, high-net-worth individuals and their families utilize tailored structuring solutions that allow them to manage their global assets within a compliant framework.
When going for various financial instruments, expatriates and Swiss residents, particularly in Zurich and Geneva, should pay special attention to those that comply with local tax regulations. Wealth managers often advise using PPLI insurance structures that combine insurance protection with customized portfolios.
Nonetheless, entering into a private placement life policy is not displayed without some important factors that must be reviewed in detail. Concerning asset eligibility, investors need to think about what exact asset classes can be included into a policy under new regulations of the Swiss Financial Market Supervisory Authority (FINMA), such as hedge funds, private equity or unlisted stock. When it comes to cross-border portability, it is important to consider how easy the policy can be transferred when moving to another European country, the UK or Asia. Furthermore, the comparison of the structure costs versus direct investments prompts several questions that include how annual management and administration costs compare to direct asset holding and what total assets would effectively make the structure cost-efficient. Lastly, there is a need to analyze the tax effects related to income tax deferral, wealth tax reporting and foreign tax credits.
This thread’s goal is knowledge sharing, regardless of whether you’re a family office principal, independent asset manager or investor interested in this form of estate planning and wealth transfer. What have been your experiences, either personally or professionally, when structuring these policies through Swiss or Liechtenstein insurance carriers? What obstacles did you encounter during the underwriting or onboarding processes?