A Primer on Swiss Annuities

Revocation Of Power Of Attorney - A Primer on Swiss Annuities

Good afternoon. Yesterday, I learned about Revocation Of Power Of Attorney - A Primer on Swiss Annuities. Which is very helpful for me and you. A Primer on Swiss Annuities

The universe of offshore tax planning and asset safety is large and complex. There are no "magic bullet" structures; instead there is a myriad of choices. The hallmark of a savvy practitioner is not only knowing of all the available options, but also knowing when to use which selection for a single client. Swiss annuities should be considered by all practitioners looking to confer significant tax and asset safety benefits on their clients.

What I said. It shouldn't be the final outcome that the actual about Revocation Of Power Of Attorney. You check out this article for info on anyone want to know is Revocation Of Power Of Attorney.

Revocation Of Power Of Attorney

For tax purposes, variable Swiss annuities allow for a complete deferral of the value build-up within the policy (similar to domestic annuities that the reader is customary with). If a trust (as discussed below) is named as the beneficiary of the policy, the trust should be a grantor trust for income tax purposes. It should be noted that fixed annuities do not enjoy the benefit of income tax deferral as they are deemed customary issue discount instruments for U.S. Tax purposes. To voice the tax benefits the policy owner should not be able to direct how the annuity is invested, but can appoint a "third-party" investment counselor to make the investment decisions.

Foreign annuities are not field to U.S. Tax reporting requirements generally associated with foreign bank accounts (U.S. Treasury Form Td F 90-22.1). Swiss annuities are not field to the 1% excise tax generally imposed on purchases of foreign life assurance or annuity policies due to the double tax treaty signed by the U.S. And Switzerland in 1998.

Swiss law offers significant asset safety for life assurance products (which includes annuities). Swiss annuities are not field to range remedies directed against the owner of the policy and are not deemed to be a part of the bankruptcy estate of the policy owner. Even if a foreign court authorizes the attachment or other levy of the policy, either in bankruptcy or otherwise, a Swiss court would not issue an order directing the assignment of the policy to the creditor or the bankruptcy trustee. Because Swiss assurance fellowships are not field to the jurisdiction of a U.S. Court, without an order from a Swiss court the annuities are not reachable by creditors.

Even if a bankruptcy proceeding is initiated against the policy owner in Switzerland, Swiss law provides that when the policy owner is adjudicated bankrupt, the possession of the policy automatically transfers over to the beneficiaries of the policy. Because the policy would no longer be an asset of the debtor, the debtor's creditors would not be able to reach it. Fraudulent exchange challenges would not apply as the exchange is automated under Swiss law.

The blanket safety afforded to annuities under Swiss law applies only when the annuity policy incorporates an appropriate beneficiary designation. A beneficiary designation that would work has to be either (i) an irrevocable beneficiary designation with no restriction on the identity of the beneficiary; or (ii) a revocable beneficiary designation with the spouse or the descendants of the policy owner named as beneficiaries.

Revocable designations allow for greater flexibility. Spouse and descendants (kids and grandkids) can be named as beneficiaries while there is a pending range action, and then removed as beneficiaries following the windup of the range action. Irrevocable designations allow for sophisticated estate planning.

An irrevocable trust (preferably a grantor trust) can be designated as the beneficiary of the policy. While that designation is irrevocable, the policy owner (who is also the settlor of the trust) can sustain the capability to prescription trust beneficiaries by retaining a power of attorney exercisable on death.
With permissible planning, a Swiss annuity can enhance any asset safety or tax planning structure.

To learn more about Swiss annuities and other offshore investment choices, visit the author's website at http://www.maximumassetprotection.com.

I hope you have new knowledge about Revocation Of Power Of Attorney. Where you can put to use in your day-to-day life. And just remember, your reaction is passed about Revocation Of Power Of Attorney.