OPES International Retirement Plan

Transcription

1 OPES OPES Advanced OPES Advanced Plus FE ATUR ES AND BENE FI TS OPES International Retirement Plan

2 2 OPES International Retirement Plan OPES lets you retire at a time and in a manner that suits you. This means that you can choose where and when you want to retire, with a level of income that meets your requirements, and at an age that suits you. The Plan is classed as an international retirement plan for Guernsey Income Tax purposes and provides retirement or savings benefits for you and your Named Beneficiaries. The Plan is a very competitive and flexible structure with a high level of income, tax, estate and succession planning opportunities. The Plan is an unapproved retirement plan in that it qualifies for an exemption from Guernsey Income Tax. The information contained in this document is based on our understanding of the current laws and practices, both of which are subject to change. Whilst every effort has been made to ensure that the information is correct we cannot accept responsibility for its interpretation, or any future changes to the laws or practices relating to Retirement Annuity Trusts in Guernsey.

3 3 Your Guide to OPES International Retirement Plan Why OPES? Offers a Retirement Option or Savings Option depending on your requirements. Provides you with a flexible, tax efficient, estate and succession planning vehicle. No restriction in contribution amounts nor manner of contributions (both regular and ad hoc contributions are permitted). Suitable for UK expatriates who intend to remain outside the UK, internationally mobile workers, foreign nationals and those wishing to make additional contributions to their retirement plan with non-uk taxed relieved funds. Domiciled in Guernsey, your plan will not become obsolete should you move between different countries of tax residence. Your plan may be denominated in, US$ or. Ideal vehicle for the acceptance of transfers from Portfolio Bonds and other products or the assignment of Portfolio Bonds to OPES. Income provision - both regular and/or lump sum payments are available both in the Retirement and Savings options. Key Advantages Having both the Retirement and Savings options at product level, OPES is distinctive in so far as it has the ability to adapt to meet your personal financial requirements for savings or retirement. Under the Savings Option, you may at any time before Normal Retirement Age elect to receive a cash lump sum and may elect to take 100% of the plan value, thus terminating your plan. Designed to qualify for an exemption from Income Tax in Guernsey, making the vehicle tax neutral for non-guernsey residents. There is no need to purchase an insurance company annuity. The annuity is linked to the assets of your plan which allows for continuity of assets after death, which may be payable to your Named Beneficiaries. A loan of a maximum of 40% of your plan value is available. You have freedom to choose from a wide range of investments. You will have your own specific separate sub fund within the Plan which means your assets are ring-fenced from other Members. You may subdivide your plan into two or more mini plans with each mini plan providing a different lifetime benefit, giving you great flexibility in terms of retirement and succession planning. Competitive and cost effective pricing structure. Your plan is not subject to the EU Savings Directive. Why Overseas Trust & Pension? Overseas Trust and Pension is regulated by the Guernsey Financial Services Commission. Overseas Trust and Pension is a specialist provider of International Pensions, Savings and Trust Solutions. Key Features and Benefits Financial Security The Plan typically falls outside of your estate On your death your plan s assets can pass to your Named Beneficiaries without going through probate or being aggregated with your estate. This may mitigate tax exposures but the tax treatment will depend on your country of tax residence and/or domicile on death. You are advised to seek independent tax advice. Under the Retirement Option, you may elect to receive a cash lump sum(s) once you have reached your Normal Retirement Age, but typically no earlier than age 50, or the retirement date you select. Lifetime Benefits enable you to structure an income using a variety of options which include: - an annuity; - an annuity certain (temporary annuity); - a drawdown; - lump sum.

4 4 The Plan does not form part of your personal assets when established Assets held in an OPES Plan are held in trust and are not owned directly by you. This may give your assets a high degree of protection from creditors. Security of the Plan provider OPES is provided by a company which is one of the largest independent trust and pensions providers in the Channel Islands giving peace of mind for you through continuity of service, product and accountability. No need to purchase an Insurance Company Annuity On your death the residual value of your plan passes to your Beneficiaries, unlike a traditional insurance annuity where any remaining assets become the property of the annuity issuer. Flexible Income Options Full flexibility on income options available to you in respect of both the level of income you require and the method and the frequency. Flexibility of Contributions Low entry level A 20,000 single one off contribution or 6,000 pa ( 500 per month). OPES makes it easy for you to save with realistic contribution limits. This is for entry into the standard OPES proposition, where investment is managed within a defined range of investment strategies. Contributions can be increased, reduced or stopped without penalty at any time The plan gives you maximum flexibility so should your circumstances change, these changes can be reflected via your plan. This means OPES is one of the most flexible tools available to you. NOTE: Any life bond or fund platform minimum investment levels and minimum term will need to be respected where a life company or fund platform product is used in conjunction with OPES. Entry level where a Life Bond investment is used is 20,000 under OPES and 50,000 under OPES Advanced. An International Portable Plan Adaptable Plan The plan is portable and can be used for many different jurisdictions. A neutrally located Plan The Plan is domiciled in Guernsey, which means your plan is held in an experienced and favourable jurisdiction both from a political and tax perspective. This status protects the assets of your plan should you live in or move to a country that imposes restrictions on the flow of assets across its borders, is politically unstable or has unattractive social or fiscal policies. Tailored Investments Investment Choice You have the freedom to choose from a wide range of investments. This includes: OPES: A defined range of investment strategies directly or via life company bond. OPES Advanced: Investments in a wide range of funds via one life company bond. OPES Advanced Plus: Investment flexibility, including but not limited to: deposit/term accounts, discretionary investment management, investment platforms, listed/unlisted equity, investment property, life company bonds. Cash to compliment investment strategies OPES gives you the ability to place part of your contributions into a managed cash strategy in Sterling, Euro, or US Dollars to meet liquidity requirements or a very low risk investment profile. Convenient switching of strategies and funds within your plan A plan that adapts to your changing life circumstances is key. OPES is designed to accommodate any changes in investor profile enabling you to implement the advice received from your Professional Advisor by switching between investments and thereby ensuring that your plan s investments always remain appropriate. A Life Bond allows you access to a wide range of funds offered by third party fund managers. Additional contributions are welcome OPES lets you make additional contributions to bolster your retirement or savings planning, minimum 1,000. Transfers from existing international pensions and life products such as single premium bonds or endowment policies are welcome and easily facilitated The plan is specially designed to take transfers or assignments in from other providers allowing you to consolidate your retirement or saving funds/assets in one efficient structure.

5 5 Investment Risk Care must be taken when selecting any investment as past performance is not a reliable indicator of future returns. Investment values and the income from them can go down as well as up, and may be affected by changes in rates of exchange. Investment volatility may mean that you may not receive back the amount initially invested. We advise you to seek professional investment advice before making any investment decision. Charges It is important for you to understand the impact of any charges on your investment which may include up front charges and ongoing management and administration fees. The actual level of fees payable will be determined by the investment option you select within your plan. Tax Advantages Your savings are tax efficient Income and capital gains arising from the investments held within the plan, or benefits paid by the plan, are not subject to Guernsey Income Tax. This means that your plan provides a very efficient environment in which your contributions can grow. Another benefit is that assets in the plan are outside the scope of the EU Savings Directive. In addition, tax authorities internationally may treat retirement schemes, and annuity income derived from them, favourably with typically only the income element of annuity payment attracting income tax. This can provide further benefit and may allow wider scope for financial planning. Overseas Trust & Pension do not provide tax advice and you will require the advice of a Professional Advisor in this regard. Flexibility Before Retirement The Plan offers a Loan facility of up to a maximum of 40% of the value of your plan. You can borrow lump sums from the plan and hence benefit from the capital within it before your retirement date. Any interest on the loan is paid to your plan. Cash received by way of a loan is typically not taxable, whereas income by way of a pension benefit can be. This provides added opportunity for financial and retirement planning. Loans must be repaid in full prior to any benefit being taken. This also applies if your plan has been segmented into mini plans, and a particular mini plan goes into benefit. The loan establishment fee is 500 and 500 for every amendment or revaluation of the loan (or as per the published Contribution and Fee Schedule which may be amended from time to time). IMPORTANT The making of any loan, or any other return or advance of capital from your OPES Plan is conditional upon the satisfactory completion of a formal OPES Loan Application Form. An amount equivalent to the loan or partial encashment value should be liquidated from any investments held. By signing an OPES Loan Agreement, and providing an investment instruction, you consent to any redemption fees or charges associated with liquidating investments or assets held within the plan. It is the role of your Professional Advisor to make you aware of any early encashment charges or penalties that may apply to any underlying investments held. The long term investment performance of your OPES plan may be adversely affected should any assets be liquidated in the short term. When considering a loan, you should always seek professional advice prior to the taking of a loan.

6 6 Flexibility at Retirement Select a date from which to receive benefit Your plan offers you considerable flexibility as you can select a date to commence receiving benefit. This means that you can choose when you start to receive income from your plan, and at a rate that suits you. This can be at any age for the Savings Option provided benefit is taken prior to your 90th birthday, or typically from 50 to 90 years of age for the Retirement Option. Segmentation of the plan into a number of mini plans This can be very beneficial and gives you additional planning options as it allows you to take benefit from each mini plan as and when required. This may assist in staggering income positions in later years, managing your tax position, or passing on wealth to your family or Named Beneficiaries. Annuity income and capital payments The plan provides a regular income option by way of annuities or drawdown. Annuities are calculated actuarially and can be for your lifetime or for a specific period (between 3 and 10 years). Drawdown lets you calculate your level of income. However, the risk with drawdown is that your plan s assets may be depleted quicker than under an actuarial calculation. Alternatively, lump sum payments are a way for you to access cash and can assist in a myriad of scenarios from paying off a mortgage to purchasing a major asset. In certain jurisdictions lump sums can be received tax free. Flexibility for future generations On your death, OPES gives the following options: To continue or start providing an income to your spouse or dependants; To segment the fund to provide different types of benefit for your various chosen Beneficiaries; To transfer the proceeds into a new OPES plan(s) for the benefit of a Named Beneficiary(ies) or to another pension or trust structure of choice; To retain the plan (hold in trust) for distribution at a pre-defined date or future event; To wind up and pass the proceeds of the plan directly into your estate for distribution from there; and/or To wind up and pass the proceeds of the plan directly to your chosen Beneficiaries. Convenient Reporting Online access You can access information about your OPES online. Annual valuations You will receive annual valuations of your plan. In addition, if you opt for a loan, the value of the loan will be reflected in the annual valuation report. Future Planning Estate and Succession Planning Advice obtained in a number of countries has shown that OPES provides substantial estate and succession planning benefits. In some cases this advice has stated that assets whilst in the Plan are free of income tax, capital gains tax, wealth tax (where applicable), donations tax (where applicable), and can be passed onto successors free of any tax (e.g. inheritance tax (IHT)) and need not be taxable until the successor takes benefit. The actual benefits to you will always depend on your personal circumstances.

7 7 Overseas Trust and Pension Limited is licensed by the Guernsey Financial Services Commission under the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, Overseas Trust and Pension Limited is registered in Guernsey Number: Investment Notices: Front-end charges may apply. Any mention of equities and bonds should not be taken as a recommendation to invest in them. We advise you to seek professional investment advice before taking any investment decision. Past performance is not a reliable indicator of future results. Investment values and the income from them can go down as well as up, and may be affected by changes in rates of exchange. An investor may not receive back the amount initially invested. FX rates shown within your Valuation are as at the date of the transaction. For security purposes, telephone calls may be recorded.

8 Overseas Trust & Pension PO Box 285, Elizabeth House, Les Ruettes Brayes, St Peter Port, Guernsey, GY1 4LX Telephone: +44 (0) Visit: Overseas Trust and Pension Limited is licensed by the Guernsey Financial Services Commission under the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, Overseas Trust and Pension Limited is registered in Guernsey Number: 55506