Bank or PPLI?

Bank Deposit  & Private Placement Life Insurance - a Very Basic Overview

Bank

Deposit Account

 You are an Unsecured Creditor. If the bank fails your money will be taken, a limited guarantee will apply for individuals

A Bank Deposit offers No Creditor Protection 

Information is passed between jurisdictions on an open basis

Bank Deposits are subject to Tax in Most Jurisdictions. Interest is subject to reporting under the EU Savings Directive

Essentials

What you Should Ensure as a Basic level

SAFETY

Your money should be held Securely and not appear on any companies balance sheet as an asset of that company.

PROTECTION

Your money should be free from potential Creditor Attacks

PRIVACY

Privacy is a 'Not Negotiable' Essential

TAX  OPTIMIZATION

Tax Efficiency is a Major Benefit that should be aimed for

A P B

Asset Protection Bond

Your money is segregated from the Assets of the Bank and cannot be the Subject of a Bail In. If the bank fails your money is secure

The Asset Protection Bond  offers Full Protection against Creditors

The Asset Protection Bond  offers Privacy that is protected by Law

The Asset Protection Bond  offers Tax free Growth and Tax Free Income in Cyprus. There are No Reporting requirements 

It is Also important to note That the Government Deposit Insurance provided for bank deposits Does NOT apply to Corporate or Pension / Provident type deposits. The Asset Protection Bond can apply a Fully Insured Capital Guarantee as well as a Guaranteed Annual return 

​Although there is access to capital, the APB is NOT a replacement for a  bank Current Account, it is for longer term deposits such as a contingency fund or provident fund.

IMPORTANT MESSAGE FOR TRUSTEES

  • When Bail Ins occur it is of no consequence that trustees deposited the money in a Bank, it will be taken. If you are responsible for cash that is to be held for beneficiaries then it is Prudent to use the Asset Protection Bond to provide a Capital Guarantee along with the Guaranteed annual growth.
  • A Provident Fund should be ​in trust to protect it and segregate it from the assets of the company in the event of bankruptcy, however, if the cash is then held on deposit with a bank it is not segregated from the banks assets and is at Risk. This was evidenced in Cyprus in 2013.  
  • Portfolio Management -The Asset Protection Bond will be constructed to provide a Dedicated Fund that can be managed in the same way as an existing portfolio, it may also be possible to transfer in the current portfolio​ assets.

The Asset protection Bond can provide the necessary segregation and protection and can be integrated with the existing Trust with the Trust as the beneficiary - Turbo Charge Your Trusts

For More InformationPlease Contact FTA 

We are happy to work alongside Your Current Professional Advisers 

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