Estate planning and wealth management services providers typically utilize one or a combination of several products to meet the needs of their clients. These needs broadly include wealth preservation, tax optimization and inheritance/estate planning. The products used to achieve these needs include tax exempt (“offshore”) companies, private foundations, trusts and various types of policies issued insurance companies, sometimes collectively referred to as “Insurance Wrappers”

In recent years we have observed drastic changes to the global financial services regulatory landscape. The estate planning and wealth management industry has been particularly affected. Global standard setting bodies such as the Organization for Economic Cooperation and Development (“OECD”) continue to drive policies which are aimed at reducing the use of various primarily cross-border structures to mitigate what the proponents of such measures feel are “unfair” tax advantages or are somehow avoiding the spirit of domestic tax laws. Countries continue to adopt more policies aimed at tackling these cross-border structures such as Controlled Foreign Corporation (“CFC”) rules, residency-based taxation and particularly onerous and uncertain provisions relating to “general anti-avoidance” of tax.

While many of the changes in the global legal and regulatory landscape have impacted the benefits offered offshore companies, trusts and private foundations, Insurance Wrappers continue to provide legitimate and legal benefits.

An Insurance Wrapper refers to a long-term insurance policy, issued a registered long-term insurer, “wrapped” around the policy owner’s investment portfolio that is registered in the name of the insurer and also controlled and administered that insurer until payment in terms of the policy takes place. Insurance wrappers offer asset protection as well as tax planning to the policyholders. The full return from the specific underlining investment portfolio after expenses and tax are allocated to that policy for the benefit of the policyholder.

We utilize a single flexible long-term insurance contract that can wrap a wide variety of investment assets (including financial instruments and fixed property companies) in an insurance policy. The life span of the policy is 99 years and will have a policy value equal to the greater of the Net Asset Value (“NAV”) of the underlying assets or US$ 100 (one hundred United States Dollars) on maturity.

In short, the policy will be an investment linked insurance policy with a minimum guarantee maturity value of US$ 100 (one hundred United States Dollars).

The value of the policy is equal to the market value of the underlying assets. Investment income will be used to pay expenses relating to the income, asset management expenses and fees to the Company.

Upon the death of the policyholder the ownership of the policy will be transferred to the stated beneficiary specified in the insurance contract.

The company intends to create a reserve fund to guarantee that it will always have sufficient assets to back the minimum maturity value (US$ 100). The reserve for each policy will be set aside at policy commencement.