Vie International Financial Services Ltd

As we close out 2024, here is the final instalment from Managing Director, Grayson Dufrene who considers the impact of inheritance tax being levied on pensions. Pensions left to non-spousal beneficiaries will become part of the taxable estate from 6 April 2027 based on the UK's recent budget. For those who have diverted earnings into pensions, saving well during their careers to accumulate significant UK pension benefits, this change to inheritance tax will feel punitive to savers and their planning goals to help benefit the next generation. Solutions exist to enhance retirement planning so this effective income and inheritance tax burden on UK pensions of 70%+ for higher tax payers can be alleviated. For our US UK connected clients, when executed correctly in the right circumstances, the pension trustee can purchase a US annuity and close out the UK pension, effectively reducing IHT on the pension plan to zero. A generous life annuity can be designed to return capital for an early demise and to provide an inflation escalator to those who live beyond life expectancy. In addition, part of the monthly annuity payments can be used to settle a life insurance trust which will pay out income and IHT free to replace part or all of the pension at demise. There is no prohibition in the UK regarding which jurisdiction a life annuity can be used and in essence creates an arbitrage to benefit the internationally connected UK resident. Life insurance and annuities are two financial planning strategies that ensure taxes are paid whilst preserving lifetime savings’ intentions. Author Grayson Dufrene, Managing Director grayson.dufrene@vieinternational.com +44 (0)20 3457 1332 Version 2.2 Date 19 November 2024 #usuk #iht #inheritancetax #lifeinsurance #budget #SIPPs #pensions #retirement #lifetime+

Happy Thanksgiving! Earlier this week, we enjoyed visiting The National Gallery’s curation of Van Gogh’s paintings titled Poets & Lovers. Special thanks to this lovely group of US UK professionals who took time out during this busy post-budget period. Van Gogh’s art work remains beautiful more than a century later. The simplicity of the colour palette in Starry Nights and the detail and precision in other paintings are equally striking. Comparing and contrasting versions of paintings, seeing how he varied backgrounds, colours and content to create the final masterpieces demonstrated his consideration, tenacity and process to perfect his work. Thank you to our Vie&Arts team: Alexandra M. Karen Dufrene FCCA MCICM Jack Davies Caitlin Walmsley If you’d be interested in joining our next arts event, please email events@vieinternational.com #USUK #Vie&Arts #LifeInsurance #AmericansinLondon

The UK budget: a life insurance response to solve inheritance tax. Part 2/3. From Vie International’s Managing Director, Grayson Dufrene, here is the second instalment reviewing the UK budget from the perspective of the life insurance industry. He considers how protection solutions can be used to keep more high and ultra-high net worth families in the UK: * For new arrivals to the UK who will be subject to worldwide taxes under the new 4-year FIG regime, early planning can make all the difference when decision time comes to stay or leave the UK. Private Placement Life Insurance (PPLI) policies and traditional death benefit life insurance can be used as a defence to allow families to stay in the UK long term in a very tax favourable position. PPLI policies can be extremely effective in either deferring UK income and gains tax or in some cases eliminating it. Traditional life insurance can also be used to provide the required liquidity for UK Inheritance Tax for new arrivals on situs assets and for long term planning in 10+ years. * For those that simply want out of the UK now that these ground shifting changes have been announced, traditional death benefit life insurance can be used to protect against IHT for the 3 to 10 year tails associated with leavers. The US market for life insurance can work very well given that US insurers embrace global citizens and respect that they tend to be mobile. Choosing the right insurance company with the optimum policy will enable the leaver to move from the UK knowing that the insurer will not push back on paying a claim if not resident in the UK. These are some solutions and there will be many other situations where the life insurance industry will provide value to families and businesses going forward. Part 3 will follow soon where Grayson considers clients who have accumulated significant pensions and previous to this budget, had intended to leave those funds to their heirs. Author Grayson Dufrene, Managing Director grayson.dufrene@vieinternational.com +44 (0)20 3457 1332 Version 2.1 Date 19 November 2024 #usuk #iht #inheritancetax #ppli #lifeinsurance #budget

We love helping our clients use life insurance to benefit a charity close to their heart ♥️ For the US UK connected, charitable giving in a tax efficient manner requires planning and expert advice. With the correct philanthropic structuring, causes that are in great need of continuous and reliable funding will yield future benefits from your legacy. Help support reliable future funding for medical, environmental and many other essential types of global research that individual governments either choose not to fund or cannot afford to fund. Contact your Vie advisor or enquiry@vieinternational.com #philanthropy #usuk #charitablegiving #lifeinsurance #legacy #internationalwealthplanning

The UK budget: a life insurance response to solve inheritance tax. Part 1. From Vie International’s Managing Director, Grayson Dufrene, here is the first part of his view of the UK budget from the perspective of the life insurance industry. He considers how protection solutions can be used to keep more high and ultra-high net worth families in the UK: * Protected Trusts by non-domiciled individuals who previously enjoyed very generous income/gains and inheritance tax (IHT) benefits are in a very different position going forward. Private Placement Life Insurance (PPLI) is a very powerful planning tool when income tax and capital gains taxes are levied on trusts. Navigating global PPLI policy design, jurisdiction and carrier options is critical in making sure that trust assets continue to enjoy tax free growth over the long term. Working with a team of experienced life insurance professionals will be paramount to delivering the optimal result for settlors, trustees and family members. * Inheritance taxes on trusts at the 40% rate or trusts caught in the Relevant Property regime with a 6% charge on each 10-year anniversary will have a number of options to use traditional death benefit life insurance (non PPLI policies) to insure for a fraction of the cost of the IHT charge. Some international policies, in particular those sourced from the USA, can reduce the value of the relevant property in the offshore trust for purposes of the 6% charge, or for other trusts can create a tax-free lump sum to settle the inheritance taxes. It is important that offshore trustees and family members engage an insurance professional that is properly licensed and qualified to survey the life insurance market in multiple jurisdictions. By engaging professionals with experience in having US life insurance policies owned by offshore trusts can bring the most dynamic global life insurance market into play. These are some solutions and there will be many other situations where the life insurance industry will provide value to families and businesses going forward. Part 2 will follow soon where Grayson considers people recently arrived in the UK, those who have accumulated significant pensions and those who are considering leaving the UK. Author Grayson Dufrene, Managing Director grayson.dufrene@vieinternational.com +44 (0)20 3457 1332 Version 1.1 Date 7 November 2024 #usuk #iht #inheritancetax #ppli #lifeinsurance #budget

👀 Looking for client solutions in response to the UK’s Inheritance Tax changes announced last week? 🌎At Vie International, we help clients create certainty in their global wealth planning. 💰 Engage our team to design a life insurance portfolio that offsets an inheritance tax exposure. 🖥️ Reach our to your Vie contact directly or email enquiry@vieinternational.com for a complimentary consultation. #IHT #USUK #lifeinsurance #AmericansinLondon #internationalfinancialplanning Advising Overseas Americans since 2003 We hope you like our new advert…

Welcome to Miami! ✈️ Last week, Team Vie travelled from LHR to the 2024 annual M Financial Group conference amidst upcoming political and taxation changes on both sides of the Atlantic. The theme: #AcceleratingExcellence and we were inspired and rejuvenated by the outstanding professionalism, knowledge and idea sharing throughout the 3-day conference. 🌎We were joined by over 500 other financial professionals across our esteemed US network for advanced life insurance and wealth planning strategies’ updates. Hearing about portfolio design, emerging product trends and AI developments from both industry veterans and upcoming trailblazers was inspirational for accelerating excellence to our global clients and throughout our firms. The banyan tree, around which the hotel was built, represents eternal life and brought special meaning to this life insurance conference. Our thanks go to the organising committee, the companies that provide excellence to our clients and to Russell Bundschuh CEO for leading M and its member firms to even greater heights, paving the way for collective ambition to thrive. Lastly, for those who know that ‘mi ami’ means ‘my friend’, we are fortunate to enjoy friendships with our colleagues and peers across the industry. Enjoy our photos below as we participated in conference sessions and activities! The 2024 Vie attendees: Grayson Dufrene Karen Dufrene FCCA MCICM Christiaan van den Hout Jack Davies Alexandra M. …and special thanks to the rest of the Vie team who stayed in London to keep the office running. We couldn’t do this without your support! #usuk #lifeinsuranceforiht #acceleratingexcellence

Last week, we had the pleasure of hosting London’s US UK Next Gen professionals. Over the last 20 years, London’s expertise of US UK cross border planning has developed a niche offering for US connected clients who choose to be based in the UK. It was lovely to see this group of upcoming private client experts taking time out to develop their professional network in the striking St James’s room at the Royal Automobile Club. Special thanks go to Vie’s Next Gen hosts: Thomas O. Caitlin Walmsley Duke Acromite, MBA and the organising committee: Nicul Varsani Greg Oldfield Daniel J. Zeitoun, CFP® #nextgen #usuk #privateclient #internationalfinancialplanning

At Vie, we love solving inheritance tax exposure with a personalised portfolio of life insurance policies. Our in-house expertise coupled with the extended support and experience of our US network allows us to deliver robust financial planning solutions to affluent UK US connected clients. In this video, Matt Mylroie, VP and Head of Insurance at M Financial Group shares his insight about policy considerations and our independent access to a market of multi-million dollars of life insurance cover. Vie solutions provide certainty and are more suitable than ever given the speculated non-dom changes in the upcoming UK budget. Contact enquiry@vieinternational.com to request a consultation. #USUK #PrivateClient #nondom #AmericansinLondon #internationalfinancialplanning

What a fortunate September day at the Royal Automobile Club in Epsom last week! The golf course was in great shape and we enjoyed a lovely day hosting a group of friendly and knowledgeable professionals who advise US connected private clients from London. 3 of the golfers ‘beat the pro’ and we also continue to welcome a group of upcoming golfers onto the driving range to try a lesson. Congratulations to all prize winners! Thank you to the Vie team participating on the day: Christiaan van den Hout Grayson Dufrene Jack Davies Thomas O. Karen Dufrene FCCA MCICM #USUK #privateclient #AmericansinLondon #internationalfinancialplanning