Dubai’s private wealth ecosystem is moving beyond rapid growth into long term institutional depth. With DIFC assets reaching US$700 billion and foundation registrations accelerating, international families are increasingly using the UAE as a structuring hub rather than simply a capital destination.
Read more“Tim Searle is one of the rare advisors who not only anticipates change in global tax legislation but also provide pragmatic, innovative solutions for international families. With three decades of experience guiding UHNWIs through the complexities of estate and tax planning, he has consistently highlighted blind spots—such as the 2017 UK inheritance tax changes—and offered effective strategies like insurance-based solutions to address them. His work gives overseas investors the clarity and confidence to continue investing in the UK while protecting their legacies. For these reasons, Tim rightfully stands among Citywealth’s Top Middle Eastern Advisors.”
Spanning 25+ years in offshore financial planning, tax advisory and wealth management with multi-award winning operations from Europe through the Middle East to Asia. Working collaboratively with Private Banks, Trustees, Law Firms, Family Offices and Fiduciary to create collaborative client liquidity solutions to meet the complex needs of UHNW families.
Specialties: Reducing and eliminating tax exposure typically for families with assets in the US, UK and Europe. Specialist structuring of VUL, PPLI, ULI, IULI, Whole of Life, Estate and Succession strategies, Inter-generational wealth transfer, asset protection and tax mitigation solutions, KeyPerson/Shareholder Protection, PE/VC, Corporate Employee Benefits, Finance.
Tim Searle, Managing Director at UHNW Tax wrote for Citywealth in a recent article. He is also a former Royal Naval Officer, jet-setter, classic car enthusiast and entrepreneur who helps UHNW clients with tax says, “The recent Budget offered no good news in terms of inheritance tax whether you are a farmer or an overseas investor in London realty. However, the latter have options open to them that most Brits do not in terms of planning for this eventuality. There is though, another option, which is using an insurance contract to pay the IHT bill.”
He explains, “The challenge is that most of the insurance contracts that deliver this result are not in the UK, are not widely known or understood by UK lawyers or trustees and, therefore, regularly overlooked. These are dynamic insurance contracts that grow in line with the ever-increasing IHT bill liability with the ability to recoup all premiums should the property be sold in future. In my mind it should feature in any planning discussion with wealthy overseas investors of UK property to give them the confidence to tackle this tax and hopefully keep them investing in UK.”
As to who is offering this type of insurance, Searle says, “It is the major insurance groups like SwissLife, Manu Life, TransAmerica and Sun Life who are all A+ companies with billions in assets and are more than 15+ years established. Each insurance company offer different policies are best used through an advisor. In terms of UK inheritance tax, I favour cash value policies and these typically derive from jurisdictions like Luxembourg, Singapore and Hong Kong.”
Read Timothy Searle’s Citywealth piece: “Property and life insurance: issues for UHNWIs”
Read “Navigating a hard market: Fresh insurance strategies for the Ultra-Wealthy”
The Client
Mr Ahmed is an Emirati citizen residing in the UAE, where he runs a successful business. He is aged 65 and has one son, Saeed living in Portugal and another son, Yousef, living in the UK. Saeed is married to an Emirati citizen and he plans to return to the UAE in 10 years’ time. Yousef is married to a British citizen and he plans to remain in the UK for the foreseeable future.
Ahmed is worried about the stability of Yousef’s marriage. Ahmed would like to gift $10m each to his sons, and ensure that they are tax efficient and would pass seamlessly to grandchildren eventually.
The Solution
Ahmed’s adviser recommends a Private Placement Life Insurance (PPLI) policy.
Ahmed gifts cash to Saeed, who sets up a Portuguese-compliant PPLI.
Saeed nominates his wife and children as beneficiaries.
Ahmed effects another policy and transfers it into a discretionary trust for Yousef’s family.
A letter of wishes guides trustees on Yousef’s policy.
The trust allows changes in beneficiaries and protects assets in case of divorce.
The assets are “excluded property” for UK inheritance tax purposes.
Benefits for the Client
Gross roll-up of income and capital gains.
Retention of an internationally focused portfolio.
Seamless wealth transmission.
Adviser remains in control of the investments.
Tax efficiency in Portugal and the UK.
Inheritance tax protection for UK family members.
No forced heirship.
The Client
Mr Karam is a Lebanese citizen in the UAE. He owns a hospitality business. His son Charbel is moving to Paris with his family to work as a teacher. Mr Karam wants to gift €5m to Charbel for additional income.
He is not interested in complex financial planning. He seeks a simple, tax-efficient structure.
The Solution
Gift is made before Charbel moves to France.
Charbel sets up a French-compliant PPLI.
Flexibility for portfolio management with a discretionary adviser.
Charbel can nominate beneficiaries, bypassing succession laws.
The policy is French tax-compliant with lower flat tax on gains.
Tax is withheld and paid by the insurer.
Inheritance tax allowances apply with reduced rates.
Benefits for the Client
Gross roll-up of income and capital gains.
Simple management and reporting.
Effective wealth transfer without forced heirship.
Income supplementation for Charbel.
Inheritance tax efficiency in France.
The Client
Mr Paolo Rossi is an Italian entrepreneur needing capital to develop his business. He prefers not to liquidate his personal assets. The bank requires a guarantee.
Objectives:
Avoid using personal assets.
Secure a bank loan.
Keep investments intact.
Preserve wealth for succession.
Ensure tax and cost efficiency.
The Solution
Mr Rossi purchases a PPLI policy and uses it as collateral:
Policyholder: Mr Paolo Rossi
Life Assured: Mr Paolo Rossi
Beneficiaries: His heirs
Asset Manager: As chosen by Rossi
Guaranteed Subject: The lending bank
Benefits for the Client
Bank accepts policy as guarantee.
No need to sell existing assets.
Relationship with adviser maintained.
Succession plan preserved.
Flexibility to update beneficiaries.
Tax deferral within the policy.
Policy excluded from inheritance tax.
Simple process banks understand.
The Client
Peter Smith, a 73-year-old widower, has £15m in liquid wealth and a total estate of £30m. He has £500k annual expenses from travel and property. He wants to pass assets to his family while maintaining an income.
The Solution
Set up a Discounted Gift Trust (DGT) using an offshore bond.
DGT gift treated as a Potentially Exempt Transfer (PET).
If Peter lives 7 years, it’s IHT-free. A discount applies if not.
Peter receives income from the gift during his life.
Existing investment structure is retained.
On death, beneficiaries take control with reduced or zero IHT.
Benefits for the Client
Gross roll-up on gains.
Lifetime income for the settlor.
Efficient wealth transfer.
Adviser continues managing assets.
Dubai’s private wealth ecosystem is moving beyond rapid growth into long term institutional depth. With DIFC assets reaching US$700 billion and foundation registrations accelerating, international families are increasingly using the UAE as a structuring hub rather than simply a capital destination.
Read more
Although a relatively new concept to wealth advisory firms outside of the US, PPLI has been an effective tool for 40+ years as a robust planning tool for HNW families. Since most offshore company and Trust structures are porous at best nowadays, the combination of PPLI has the ability to […]
Read more
UK inheritance tax (IHT) rules changed dramatically in 2017, making traditional offshore structures ineffective for shielding UK property from IHT, regardless of nationality, domicile, or trust arrangements. Many high-net-worth advisors have not updated their strategies, leaving international families exposed to significant tax liabilities. Key insights: Advisors must rethink wealth-preservation strategies […]
Read more
What is PPLI? Private Placement Life Insurance (PPLI) is a specialist form of life assurance designed to maximise cash value with a relatively low death benefit. Instead of being tied to standard “off-the-shelf” insurance funds, the policy can invest in bespoke, professionally-managed portfolios – often using your existing bank and […]
Read more
Inheritance Tax (IHT) has taken centre stage in the UK political agenda whether you are a farmer, non-domicile or those who just think it is unfair.
Read more
The landscape of insurance for ultra-high-net-worth individuals and their luxury assets—ranging from yachts and private jets to expansive art collections and international real estate portfolios—is undergoing a seismic shift.
Read more