Insurance products are ideal for funneling assets at low tax rates, investing them tax-free or protecting the family, says asset manager Stefan Brahler. Because it’s a positive multiplier effect: The tax effects not only improve returns but also reduce costs.
For many clients in asset management, the utilization of insurance policies provides significant benefits like control through well-planned asset transfers or tax-exempt income. That’s why these insurance solutions are a highly efficient asset management design tool. Asset management are going to be continued by the asset manager. rock bottom line is that the spending on this is often usually much but it appears initially .
Remember: within the past, asset management fees might be claimed as an income-related expense. This was not possible since the withholding was introduced. Until recently, 50 percent of this might still be claimed as a part of the blanket fee, but this feature was also canceled for clients of independent asset managers. you’ll not make any tax deductions. a clear disadvantage compared to the competition from banks especially for independent asset managers.
Various rules apply to the asset manager’s job in an insurance solution. Because all the expenses included within the contract, no matter whether or not they are for insurance, asset management or banking services, even the VAT you paid yourself, are tax deductible. This significantly changes the general beam voltage.
Looking at the large picture in many customer situations shows that insurance solutions are often an inexpensive and cost-effective addition to asset management.
An asset manager also benefits. With an insurance solution, he features a corporate mandate and not billing to non-public clients, but to the insurance firm directly.
Without the tax inflows within the custody account, more assets remain under management. And with successful customer succession planning, the asset manager already gains an honest reference to subsequent generation of consumers .