Helping you discover more with your time through bespoke wealth management
Some of the products listed on our website may not be available in certain regions due to regulatory reasons. Please contact our local offices to speak to a qualified financial advisor.
Succession | Financial Advice | Legacy Planning
Saturday, December 24, 2022
A seasonally timed case study for a client that, for confidentiality reasons, we can only refer to as SC.
Our client, who runs a global distribution business particularly focused towards children's gifts, wanted to review his planning. He was very keen to retain his privacy, particularly during the months he is not actively working on his distribution business and wanted to protect his assets, both physical and human.
In light of the Panama, Paradise, and Pandora Papers (collectively known as the Panadol Papers since it gives everyone a headache) SC wanted to ensure that the ownership of his distribution sleigh was not of public record and was keen to retain his privacy. If he is details were to become of public record he was deeply concerned about the visitors and their intrusion on him. Presently, the sleigh is owned by an offshore SITH (Svalbard Islands Tax Haven), and his adviser (Mr Vader) suggested that Globaleye could offer a more robust solution. So, the sleigh was moved to a PPLI so SC could protect the asset, improve the tax efficiency, retain his privacy and pass it to future generations unencumbered.
It transpired, that there was outstanding finance on the sleigh, so our partners were able to create a more attractive solution namely the never, never plan. Not only did we deploy never, never debt cover but we insured the sleigh itself, the valuable contents it contained in the event of any eventuality during the busy distribution period and global travel insurance. It had to be made clear to our client that the policy could be voided if excessive sherry consumption had taken place; mince pies were permitted.
SC had a large workforce to support his business and so an overview of their corporate employee benefits was reviewed. Most of the employees were engaged in toy manufacture so it was imperative that they had workmen's compensation, medical cover and a defined corporate pension plan. It was noted that the contributions towards the pension plan for the employees should take place throughout the year whereas for our client, SC, this would be for the only day of his active service, so these contributions were considered inconsequential.
It was noted that the propulsion system for the sleigh was that of reindeer, so we managed to bring these assets under the banner of “pets” and implemented a Vet Cover Plan. There was one reindeer with a pre-existing condition, so we had to disclose the “red nose” on the application for one of the reindeer to preclude voiding the policy.
Unfortunately, we could not deliver a solution on one aspect since SC wanted to do KYC (Know your Young Children) and their associated behavioural status. Apparently, there are some that are PEP (Peeping Early at Presents) and others who have been placed on the sanctioned list for not doing their CPD (Chores Prior to Dinner) and as such need to be excluded from the distribution process. We only hope that his clients have submitted their Letter of Wishes and have complied with GAAR (Generally Always Acting Responsibly).
If you have clients with similar planning challenges, cross-border issues, business protection requirements, corporate employee benefit needs, asset privacy and “gifting” advisory then get in touch with us.
For better web experience, please use the website in portrait mode