Sebastian
Empowering a professional investor’s legacy through VUL solutions
Services Provided
Insurance Solutions
Succession Planning
Client Background
Sebastian is a semi-retired professional investor based in the United Kingdom, with extensive experience across multiple asset classes. He actively manages his own portfolios. Currently these are held in personal investment accounts as he has always given more attention to what he
owns as opposed to how he owns it.
Sebastian wishes to continue enjoying investment returns and a good lifestyle as he and his wife get older. They also want to leave a financial legacy to help their children and grandchildren.
His children are financially independent and both pursuing careers unrelated to finance.
Sebastian, his wife and their children don’t feel confident that the latter are able to manage the current portfolio of investments. It’s too complex, they don’t have the experience and it would put a big strain on them.
Client’s Goals
Improve the tax efficiency of his investments to improve net returns and optimise income.
He hopes to retain control of his assets and enjoy the income they generate.
He wants to leave a sufficient cash benefit to his children without burdening them with the complexities of portfolio management.
Our Tailored Solutions
The family and Oakcean discussed the variable competing objectives. First, to improve tax efficiency on the investment returns, while benefiting from regular income. Second, to earmark capital for succession, while retaining control of the assets during his lifetime.
It was decided that a Variable Universal Life (VUL) policy would be suitable vehicle for investment and succession planning. Sebastian’s portfolio would be the premium and he would be named as the life assured. On succession, his wife and children, as the beneficiaries, would receive a significant life assurance payout.
Sebastian restructured his portfolio by using Oakcean’s investment strategies, to be eligible for a VUL policy and ensure compliance. So that Sebastian remained involved in the decision-making process without the day-to-day operations, a dedicated fund was set up, and Sebastian joined the investment committee alongside Oakcean.
Outcome
Investment gains within the VUL policy are tax-deferred, reducing Sebastian’s immediate tax burden.
He continues to enjoy the growth potential of his portfolio while retaining the life insurance coverage for the benefit of his wife and children.
Sebastian remains involved in investment decisions, and the policy’s cash value offers flexible withdrawals to meet liquidity needs.
All assets are consolidated within a single policy, streamlining the management.
Upon inheritance, assets pass directly and privately to his children without probate procedures.
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