1. Financial and Retirement Planning. An annuity contract can provide a secure, steady stream of income for your future benefit or for the future support of family members. This may be especially advantageous when current sources of income are expected to diminish.
2. Investment Management and Diversification. Annuity companies may offer investment management expertise, as well as access to investments (including alternative investments) world-wide that are not otherwise available to individuals, especially individuals who reside in heavily regulated jurisdictions.
3. Preparation for Significant Life Events. An annuity contract may afford an individual who is facing a significant life event (e.g., illness, divorce, public/philanthropic service, incarceration) the ability to ensure a secure, steady stream of future income for himself or his/her family.
4. Asset Protection. The laws of many jurisdictions exempt assets held in annuity policies from restraint, seizure or encumbrance by creditors of policy owners, annuitants or beneficiaries. An annuity contract may thus serve as an extremely effective means of protecting assets from future, or even present, creditors. An annuity contract may also facilitate pre-bankruptcy planning in certain jurisdictions via conversion of non-exempt assets to exempt assets.
5. Privacy and Confidentiality. The laws of certain jurisdictions prohibit annuity companies from disclosing financial information regarding their annuity contracts, contract owners, annuitants or beneficiaries to any person or entity, thereby providing total confidentiality regarding assets, income and investments. Annuity contracts are thus an effective means of avoiding financial disclosure to undesirable persons or entities.
6. Income Tax Planning. The laws of most jurisdictions provide for the deferral of tax on the accumulation of income and the appreciation of assets within an annuity policy. Income may thus be compounded tax-free and appreciated assets may be sold tax-free by the annuity company. Ultimately, the recipient of future annuity payments may be taxed, but only on the portion of each annuity payment received that is allocable to income; no tax would be paid on the annuity portion received that is allocable to principal. Depending upon the domiciles of the policy owner and the annuity company, the transfer of highly appreciated assets in return for an annuity policy and the subsequent sale of those assets by the annuity company, may allow for significant tax minimization or deferral on the transaction, the subsequent diversification of investment proceeds, and significant tax minimization or deferral of future investment income.
7. Estate and Inheritance Planning. An annuity policy may be an effective and tax efficient means of providing a steady, secure source of income to surviving spouses, heirs and future generations, especially if one is concerned about the judgment, ability or frugality of such persons, or their exposure to future claims.
Offers to acquire our services or expressions of interest in our services will only be considered if presented in writing to our principal offices at 5 Cork Street, Belize City, Belize.
