Lawrence J. Chastang, Jr. on Insights for Cross-Border Wealth Management

GRAND CAYMAN, CAYMAN ISLANDS / ACCESSWIRE / June 8, 2023 / Cross-border wealth management has become an increasingly important issue for High Net Worth Individuals (HNWIs) - particularly those with notably valuable assets who need to minimize tax liability. As the Managing Director of Star Insurance Company (Cayman), Limited, Lawrence J. Chastang Jr. has provided trusted wealth management advice for these individuals, highlighting the role of the Single Premium Deferred Variable Annuity (SPDVA) to elevate their financial planning.

"SPDVAs, when properly diversified, offer a powerful tool to reduce overall tax burdens in multiple jurisdictions. By deferring taxes on gains during the accumulation phase until withdrawals are made, HNWIs can effectively manage their fiscal liabilities and enhance their wealth preservation," says Lawrence J. Chastang Jr.

SPVDA annuities are a type of insurance contract that allows investors to make a single premium payment upfront, and then defer taxes on the investment gains until they begin taking withdrawals. The funds within the annuity are then invested in a variety of underlying investment options including stocks, bonds, and alternatives.

One of the primary benefits of a SPDVA is its minimization of fiscal liabilities across multiple jurisdictions. HNWIs can reduce overall tax burdens by deferring taxes on gains until taking withdrawals. Additionally, SPDVAs are structured in a tax compliant way to ensure that investors are not subject to unexpected fiscal liabilities.

Another strategy for using SPDVAs in cross-border wealth management is to take advantage of the structuring flexibility that the products offer. As SPDVAs may be tailored to meet the specific needs of individual investors, they can be an effective way to customize a wealth management strategy. For example, some SPDVA products may offer the ability to make in-kind premium payments such as real estate or private equity. This may be particularly useful for HNWIs who are interested in fully diversifying their portfolios.

Additionally, SPDVAs may be structured to accommodate various currencies which can be an effective tool for managing currency risk in cross-border wealth management. The flexibility of SPDVAs allows investors to hedge against currency fluctuations, ensuring the preservation of their wealth in international markets and enhancing overall portfolio diversification.

"In an era of expanding global wealth and intricate financial landscapes, the role of SPDVAs in cross-border wealth management cannot be overstated," says Lawrence J. Chastang Jr. "With their unique advantages, we enable HNWIs to navigate the complexities, seize opportunities, and secure their financial legacies with confidence."

In light of the rise in international banking - The Bank of England expects cross-border payments to reach a value of $250 trillion by 2027 - SPDVAs are an important tool for cross-border wealth management. By offering tax deferral benefits, structuring flexibility, and the potential for higher returns through alternative investments, SPDVAs can be an effective way to minimize fiscal liabilities, manage currency risk, and diversify portfolios.

This article provides guidance and information for consideration and is not intended to provide specific tax and/or legal advice.

Contact Information:

Andrew Mitchell
Email: media@cambridgeglobalmedia.com
Phone: 404-955-7133

SOURCE: Cambridge Global