1 / 13

Lawrence Lewis October 16, 2013

Lawrence Lewis October 16, 2013. US Foreign Account Tax Compliance Act Insurance in Private Wealth Management.

kimama
Download Presentation

Lawrence Lewis October 16, 2013

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Lawrence Lewis October 16, 2013 US Foreign Account Tax Compliance Act Insurance in Private Wealth Management

  2. This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation.

  3. Insurance in Private Wealth Management • Asset and lifestyle protection • Savings • Investment • Wealth transfer • Tax planning 2 Insurance in FATCA – The Nassau Conference

  4. What are financial accounts? • Products that are financial accounts in an insurance related context include: • A contract issued or maintained by an insurance company or a holding company of an insurance company if the contract is a cash value insurance contract or an annuity contract • Any amount held by an insurance company under a guaranteed investment contract or under a similar agreement to pay or credit interest thereon or to return the amount held 3 Insurance in FATCA – The Nassau Conference

  5. How does FATCA define insurance? • A contract (other than an annuity contract) under which the issuer in exchange for consideration agrees to pay an amount upon the occurrence of a specified contingency involving mortality, morbidity, accident, liability, or property risk. 4 Insurance in FATCA – The Nassau Conference

  6. How does FATCA define an annuity? • A contract under which the issuer agrees to make payments for a period of time determined in whole or in part by reference to the life expectancy of one or more individuals. • The term also includes a contract that is considered to be an annuity contract in accordance with the law, regulation, or practice of the jurisdiction in which the contract was issued, and under which the issuer agrees to make payments for a term of years. 5 Insurance in FATCA – The Nassau Conference

  7. Exclusions from the definition of a cash value

  8. Who is the account holder? • The account holder of an insurance or annuity contract is each person that is entitled to access the contract’s value (for example, through a loan, withdrawal, surrender, or otherwise) or change a beneficiary under the contract. • If no person can access the contract’s value or change a beneficiary, the account holders are: • any person named in the contract as an owner and • any person who is entitled to receive a future payment under the terms of the contract. • When an obligation to pay an amount under the contract becomes fixed, each person entitled to receive a payment is an account holder. 7 Insurance in FATCA – The Nassau Conference

  9. Do I need to consider beneficiaries today? • A participating FFI may presume that an individual beneficiary (other than the owner) receiving a death benefit with respect to a life insurance contract that is a cash value insurance contract is a foreign person, and is therefore not required to retain a record of documentation from such person, unless the participating FFI has actual knowledge or reason to know that the beneficiary is a U.S. person. • A participating FFI has reason to know that a beneficiary of a cash value insurance contract is a U.S. person if the information collected by the participating FFI and associated with the beneficiary contains U.S. indicia. 8 Insurance in FATCA – The Nassau Conference

  10. Is there any relief for grandfathered obligations? • Available for: • A life insurance contract under which the entire contract value is payable no later than upon the death of the individual(s) insured under the contract; and • An immediate annuity contract payable for a period certain or for the life of the annuitant 9 Insurance in FATCA – The Nassau Conference

  11. Is there any relief for grandfathered obligations? • However, it excludes: • Contracts that lacks a stated expiration or term (for example, a savings deposit or demand deposit, a deferred annuity contract, or a life insurance contract or annuity contract that permits a substitution of a new individual as the insured or as the annuitant under the contract) • Brokerage agreement, custodial agreement, investment linked insurance contract, investment linked annuity contract 10 Insurance in FATCA – The Nassau Conference

  12. Thank you!! 11 Insurance in FATCA – The Nassau Conference

  13. Deloitte

More Related