Case studies - Wealth transfer scenarios

A client, 48 years old, an executive in the pharmaceutical industry, is a widow with two children (12 and 16). She inherited liquid assets and various properties from her husband, which are used as rental properties. Total value: €1 million cash, €5 million real estate. She wants her children to be financially secure in the event of her death: at best, they can access liquid assets without having to sell the properties. 

An Italian entrepreneur living in Italy, 45 years old, married, three children. His assets are largely tied up in the company, as well as invested in real estate and other assets. In the event of his death, he wishes to give equal consideration to the three children, while protecting the company. Since the eldest son wants to run the business, a balance must be struck between the other two other children. 

Needs

• Financial security for the children through high level death cover
• Generation of liquidity to pay taxes and other liabilities
• Professional management of investments and flexible structuring options

Needs

• A tailor-made solution for equal transfer of assets to the children while achieving financial security for the family
• Protection of the family business
• In the event of a lack of liquidity, the client wants to be able to access any surplus in the policy 

Solution

Tailor-made solution. The client subscribes a Swiss Life Generations (Italy) policy with herself as insured person and insured life and the children as beneficiaries. In the event of the mother's death, the children are financially protected by the high death cover. The financial assets are rapidly and easily made available.

Liquidity generation. The high death cover generates liquidity when it is needed: inheritance tax and other claims can be settled promptly in the event of the mother's death. This means that the real estate does not need to be sold and remains available for future use.

Asset management. The management of the assets in the policy is handled by experts.

Flexibility. If necessary, the mother can withdraw investment profits from the policy* to compensate for personal liquidity shortages.

Self-determination. We support our clients so they can live a self-determined life with confidence. Swiss Life Generations (Italy) places the client in the best strategic position to benefit from any potential investment upside; and at the same time, they and their loved ones receive the assurance of a high coverage for life.  

Solution

Tailor-made solution. The client subscribes a Swiss Life Generations (Italy) policy. In the event of death, the eldest son receives the family business; the other two children inherit an equal share, consisting of the real estate, the other assets and the payout from the life insurance policy. Due to the high death cover, sufficient liquidity is available in the event of death to provide equal compensation.

Protection. The insurance benefit also makes it possible to pay the inheritance tax. The family business is protected.

Flexibility. The client can withdraw investment profits from his life insurance policy* allowing for greater flexibility in case of lack of liquidity.

Self-determination. We support our clients so they can live a self-determined life with confidence. Swiss Life Generations (Italy) places the client in the best strategic position to benefit from any potential investment upside; and at the same time, they and their loved ones re-ceive the assurance of a high coverage for life. 

* Withdrawals from Swiss Life Generations (Italy) may or may not reduce the insurance coverage. More information can be found in the General Policy Conditions.

The facts, statements and any information contained herein are as up to date as is reasonably possible and may be subject to revision in the future. Such statements represent projections which could differ materially from actual outcomes and results. This document is for information purposes only and is not to be construed as solicitation or an offer for the provision of the services described herein. The information herein is not to be considered as any form of legal, tax or investment advice and should always be used in combination with an appropriate professional advice obtained from a qualified professional source. Whilst every effort has been made to ensure the facts stated herein are accurate and true, Swiss Life shall not be liable for any errors, misprints or misinterpretation or for any damage whatsoever arising, directly or indirectly, from any use of this information.

* Withdrawals from Swiss Life Generations (Italy) may or may not reduce the insurance coverage. More information can be found in the General Policy Conditions.

The facts, statements and any information contained herein are as up to date as is reasonably possible and may be subject to revision in the future. Such statements represent projections which could differ materially from actual outcomes and results. This document is for information purposes only and is not to be construed as solicitation or an offer for the provision of the services described herein. The information herein is not to be considered as any form of legal, tax or investment advice and should always be used in combination with an appropriate professional advice obtained from a qualified professional source. Whilst every effort has been made to ensure the facts stated herein are accurate and true, Swiss Life shall not be liable for any errors, misprints or misinterpretation or for any damage whatsoever arising, directly or indirectly, from any use of this information.