INVESTMENT SERVICES
Wellington Shield Life Contract

The Wellington Shield Life Contract is a specialist insurance policy that can be used as an alternative holding structure to an offshore trust. Unlike traditional insurance policies, which strictly restrict investment of the policy premium to collective investment funds, the Wellington Shield policy allows the insurance premium to be invested, at the request of the policyholder, in private assets such as the shares of a private company.

The motivation for establishing such a policy is to take advantage of tax benefits that can be available when an offshore company is ‘held’ via a life insurance arrangement.

The policy is most frequently used in situations where clients need to avoid deeming provisions, Controlled Foreign Company (CFC) rules and complex disclosure rules. Insurance structures can often achieve these objectives and the Wellington Shield policy has been specifically designed to work in tandem with the traditional offshore entities. The policy is written on an agreed fee structure unrelated to asset value and allows the policyholder the ability to make withdrawals during the life of the policy.

Wellington Shield Life Contract (technical data) (acrobat document.)

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