This briefing is designed for financial advisers only and should not be distributed to or relied upon by individual investors.
This briefing is designed for financial advisers only and should not be distributed to or relied upon by individual investors.
Welcome to the Summer 2025 edition of NAVIGATOR.
This quarter, our Technical Spotlight focuses on a theme that continues to gain traction among HNW and UHNW investors: alternative assets and private markets. As interest in private markets grows, so too does the need for robust structuring and operational support. To explore this further, I sat down with Domenico Iacono, Head of Group Complex Assets and Investment Data, to discuss how clients and advisers are responding to this shift – and the practical challenges that come with it.
We also feature expert insights on how insurance-based solutions can support the integration of private market investments into long-term wealth strategies. Peter Tung outlines how insurance solutions can be tailored to meet the needs of wealthy families in Asia, while Brendan Harper explores how our multi-support framework enables flexible access to private markets through a single, scalable structure.
In Regulation, Tax and Compliance, we cover major developments across Europe and Asia — including France’s Supreme Court ruling on beneficiary nominations, Thailand’s new tax on overseas income, Spain’s proposed 100% transfer tax, and Belgium’s upcoming capital gains tax. Each article outlines the implications for advisers and clients, and how insurance-based planning can help navigate the changes.
Our Country Focus section offers practical guidance on estate planning in Spain and France, with a spotlight on the importance of beneficiary nominations and the legal clarity surrounding unit-linked life insurance.
Finally, our Case Study Insights feature shows how tailored structuring helped a British national simplify a complex cross-border investment when relocating to Spain.
We hope you enjoy this edition and welcome your feedback.
Aidan Golden
Head of Group Technical Services
A recent ruling by the French Supreme Court has shifted the legal landscape regarding changes to beneficiary nominations in life insurance policies.
On 3 April 2025, the Court re-established a more liberal approach, stating that only the policyholder’s clear and unequivocal intention is required for a valid modification – removing the previously established requirement to notify the insurer.
Under Article L.132-8 of the French Insurance Code, a policyholder may amend a beneficiary clause – if not previously accepted – via a contract rider, formalities under Article 1690 of the Civil Code, or a testamentary disposition. While the law is clear, the Supreme Court has ruled several times on the conditions of validity.
Earlier decisions (Cass. Civ. 1ère 6 May 1997 and Cass. Civ. 2ème 13 September 2007) allowed unilateral amendments without formal requirements, provided the policyholder’s intention was certain and unequivocal. Notification to the insurer was mentioned but not deemed essential.
However, subsequent rulings (Cass. Civ. 2ème 13 June 2019 and 10 March 2022) introduced a stricter interpretation, requiring notification to the insurer before death as a condition of validity.
The latest decision (Cass. Civ. 2ème 3 April 2025) reverses this stance. The Court ruled that the policyholder’s certain and unequivocal intention alone determines validity, even if the insurer was unaware of the change before paying the death benefit.
This ruling introduces two key challenges:
This decision creates uncertainty for both insurers and policyholders. Insurers may face claims from newly identified beneficiaries after benefits have been paid. Policyholders may question whether unnotified changes will be honoured.
Advisers play a critical role in guiding clients. To safeguard the policyholder’s intentions, it is essential to notify the insurer of any changes to the beneficiary clause.
Thailand has introduced sweeping changes to the taxation of overseas income. From 1 January 2024, all overseas income remitted into Thailand by tax residents is now taxable – regardless of when it was earned. However, a proposed exemption for 2025 offers a unique opportunity.
In response to global tax transparency efforts, Thailand has overhauled its rules on remitting overseas income. The once-common strategy of deferring remittances to avoid tax is no longer effective as of 2024. However, a proposed exemption for 2025 presents a time-limited planning opportunity. In this context, ILPs offer a powerful alternative for protecting, growing, and transferring wealth in a tax-compliant manner.
1. 2024: Overseas Income Now Taxable on Remittance
From 1 January 2024, all overseas income remitted into Thailand by a Thai tax resident is subject to personal income tax, regardless of when the income was earned.
Implication: Clients can no longer rely on delayed remittance to avoid tax. Legacy overseas funds must be reviewed for potential exposure.
2. 2025–2026: Proposed Tax Exemption Window for New Income
A draft regulation proposes that overseas income earned in 2025 and remitted during 2025 or 2026 will be exempt from personal income tax. While not yet enacted, this presents a valuable planning window.
Implication: Clients should consider aligning income realisation and remittance with this window. ILPs can help manage these flows in a compliant, tax-efficient manner.
3. Increased Scrutiny of Cross-Border Transfers
Traditional cross-border planning tools – such as gifts, shareholder loans or distributions from overseas companies – are now under greater scrutiny. Poor documentation may result in these inflows being reclassified as taxable income.
Implication: Work closely with tax counsel to ensure proper classification and documentation. ILPs may reduce complexity and mitigate tax risks.
4. Strategic Use of ILPs
ILPs offer powerful tools for wealth accumulation, tax deferral, and succession planning:
Repositioning overseas assets into ILPs can support tax-deferred growth, tax-exempt income, and create a compliant structure for cross-border succession and liquidity planning.
Thailand’s revised tax treatment of overseas income requires a strategic and proactive response. While deferral-based tactics have ended, the 2025 window offers a valuable opportunity. ILPs offer clients a powerful and compliant means of managing wealth in a changing landscape.
As global transparency increases, compliant, tax-smart structures like ILPs are no longer optional – they're essential tools in every wealth manager’s toolkit.
References
On 22 May 2025, the Spanish Government submitted a Bill to Congress proposing a 100% state transfer tax on certain real estate acquisitions by non-EU residents. Aimed at curbing speculative investment and promoting affordable housing, the measure has sparked legal and political debate. If enacted, it could significantly affect foreign investors and Spain’s real estate market.
In recent months, the housing market has become a focal point in Spain’s political and fiscal agenda – both regionally and nationally. Skyrocketing purchase and rental costs have prompted calls for reform, with the Government committed to increasing the availability of affordable housing for Spanish residents and limiting speculative practices.
Several tax measures have already been introduced, while others – such as the proposed 100% transfer tax – remain under parliamentary review.
The Bill also proposes:
The Bill is still in its early stages. It has been submitted to Congress but has not yet been accepted for discussion. If accepted, a special commission will be appointed, and political parties will have the opportunity to propose amendments. The process is expected to take time, particularly given the Government’s fragile position following a major corruption scandal.
If Congress approves the Bill, it will move to the Senate. Given the Senate’s conservative majority, rejection is possible. In that case, the proposal would return to Congress for a final decision.
Political consensus appears unlikely in the short term, especially following recent corruption scandals affecting the Socialist Government.
The proposed tax is likely to face legal scrutiny, particularly under European Union law. It may breach Article 63 of the Treaty on the Functioning of the European Union (TFEU), which prohibits restrictions on the free movement of capital between EU Member States and third countries.
Relevant precedents include:
Given this context, a 100% transfer tax targeting only non-EU residents is vulnerable to annulment or modification. It may be deemed confiscatory or unconstitutional under Spanish law.
Notably, legal professionals who previously challenged Spain’s Form 720 penalty regime are preparing to contest this proposal at the European level if it progresses.
If enacted, the tax could deter HNWIs from countries such as the USA, UK, UAE, Switzerland, Norway, and Latin America. Many investors purchase Spanish property as part of pre-immigration planning before relocating permanently and becoming Spanish residents. The proposed tax could disrupt their timings and plans.
Despite the uncertainty, Spain continues to offer strong appeal for globally mobile wealthy families.
With appropriate legal and tax advice, pre-immigration planning, and tailored insurance-based wealth solutions, Spain remains a top-tier destination for HNWIs. It offers a high quality of life, favourable climate, strong education and healthcare systems, and a supportive business environment.
While the proposed 100% transfer tax is still under parliamentary review, it has already raised concerns among legal experts, investors and EU institutions. If enacted, it could reshape the landscape for non-EU investors in Spanish real estate. However, legal and political hurdles may delay or dilute its implementation.
The Belgian government has agreed to introduce a new capital gains tax (CGT) on financial assets held by Belgian residents. The tax will take effect from 1 January 2026 and will apply to a broad range of financial products, including unit-linked life insurance contracts.
Belgium has long stood out as one of the few countries without a general capital gains tax on financial assets. This will change from 1 January 2026, following the government's recent agreement on a new CGT regime.
This article outlines the key features of the proposed tax based on early commentary and a preliminary draft law. We also provide initial insights into its impact on unit-linked life insurance contracts.
Important: As the final draft law is not yet published, some details may change. We will update this article once the final version is available.
At present, we believe the following key points are especially relevant for financial intermediaries advising Belgian clients and working with insurance-based solutions:
The draft law will soon be submitted to the Council of Ministers. It will then be reviewed by the Conseil d’État/Raad van State (Council of State), which has 30 days to issue its opinion.
Following this review, the draft will be introduced in Parliament. Although minor amendments may occur, approval is expected given the government's majority.
Parliament is likely to approve the law by October or November 2025, enabling it to take effect from 1 January 2026.
From 2026, Belgian financial institutions will be required to withhold CGT on gains, with an opt-out mechanism available to investors. This change will place a significant administrative burden on banks and insurers, and timely implementation may prove challenging.
For financial assets held abroad, Belgian residents must declare capital gains in their tax returns. They must also request the €10,000 exemption in their tax declaration, even for assets held with Belgian financial institutions.
The new regime is expected to significantly complicate the already complex tax declaration process for Belgian residents from the 2026 tax year onward.
The new CGT regime may enhance the appeal of unit-linked life insurance contracts for Belgian residents. As CGT applies only on withdrawal or surrender, these contracts offer tax deferral benefits.
They may allow gains to offset losses over time, depending on future clarifications and simplify administration.
Advisers with Belgian-resident clients should review clients’ investment structures now to ensure readiness for the new tax regime.
De Belgische regering heeft beslist om een nieuwe meerwaardebelasting in te voeren op alle financiële activa die worden aangehouden door Belgische Rijksinwoners, natuurlijke personen (de belasting zal dus niet van toepassing zijn op vennootschappen onderworpen aan de vennootschapsbelasting). De belasting zal ingaan op 1 januari 2026 en zal worden toegepast op een brede waaier aan financiële producten, waaronder levensverzekeringen van het type TAK 23, gekoppeld aan toegewezen of externe beleggingsfondsen.
Nicolaas Vancrombrugge, Senior Wealth Planner voor België en Luxemburg, analyseert het voorlopige Wetsontwerp en de mogelijke implicaties voor verzekering gerelateerde vermogensstructureringen.
België was lange tijd één van de weinige landen zonder algemene meerwaardebelasting op financiële activa. Dat verandert vanaf 1 januari 2026, nu de regering een akkoord heeft bereikt over een nieuw meerwaardebelasting voor natuurlijke personen.
Dit artikel geeft een overzicht van de belangrijkste kenmerken van de voorgestelde belasting op basis van de eerste commentaren en een heel voorlopige tekst van wetsontwerp. Daarnaast bieden we een eerste analyse van de impact op levensverzekeringscontracten van het type Tak 23.
Belangrijke opmerking: aangezien het definitieve Wetsontwerp nog niet is gepubliceerd, kunnen details wijzigen. Dit artikel zal worden bijgewerkt van zodra meer definitieve informatie beschikbaar is.
Voor financiële tussenpersonen die Belgische cliënten adviseren over verzekeringsoplossingen zijn vooral de volgende punten belangrijk:
Het definitieve Wetsontwerp dient binnenkort te worden goedgekeurd door de Ministerraad en daarna voorgelegd aan de Raad van State, die binnen 30 dagen advies uitbrengt.
Daarna wordt het Wetsontwerp ingediend in het Parlement. Aangezien het Wetsontwerp reeds zal zijn goedgekeurd door de Regering mag verwacht worden dat het Parlement hoogstens nog enkele technische wijzigingen zal aanbrengen aan de tekst. De parlementaire goedkeuring wordt verwacht in oktober of november 2025, zodat de Wet op 1 januari 2026 in kracht kan treden.
Vanaf 2026 zullen Belgische financiële instellingen meerwaardebelasting dienen in te houden aan de bron, met een opt-outmogelijkheid voor beleggers. Dit zal een belangrijke administratieve last teweegbrengen voor banken en verzekeraars en de tijdige implementatie hiervan zal een uitdaging vormen.
Meerwaarden die worden gerealiseerd op activa die Belgische Rijksinwoners aanhouden in het buitenland zullen zij zelf dienen aan te geven in hun belastingaangifte. Ook de aanvraag voor de
€10.000-vrijstelling zal via de belastingaangifte dienen te gebeuren, zelfs als de activa bij een Belgische bank worden aangehouden.
Er mag worden verwacht dat de nieuwe meerwaardebelasting de reeds ingewikkelde belastingaangifte van Belgische Rijksinwoners vanaf het belastingjaar 2026 nog ingewikkelder zal maken.
De nieuwe meerwaardebelasting kan het gebruik van TAK 23 (unit-linked) levensverzekeringen aantrekkelijker maken voor Belgische beleggers.
Aangezien meerwaardebelasting op dit soort contracten enkel van toepassing is op de gerealiseerde meerwaarde bij opname of afkoop, bieden zij een voordeel van belastinguitstel.
Bovendien zal men door middel van het levensverzekeringscontract gerealiseerde winsten en verliezen over verschillende jaren met elkaar kunnen compenseren en creëert men administratieve vereenvoudiging.
Le gouvernement belge a décidé d’introduire une nouvelle taxe sur les plus-values réalisées sur l’ensemble des actifs financiers détenus par des résidents belges, personnes physiques (les sociétés soumises à l’impôt des sociétés ne sont donc pas concernées). Cette taxe entrera en vigueur le 1er janvier 2026 et s’appliquera à un large éventail de produits financiers, y compris les contrats d’assurance- vie Branche 23, qu’ils soient liés à des fonds dédiés ou à des fonds externes.
Nicolaas Vancrombrugge, planificateur patrimonial senior pour la Belgique et le Luxembourg, analyse le projet de Loi (préliminaire) et ses implications pour les solutions patrimoniales assurantielles.
La Belgique faisait partie des rares pays à ne pas appliquer de taxe générale sur les plus-values financières. Cela changera à partir du 1er janvier 2026, avec l’introduction d’un nouveau régime fiscal désormais approuvé par le gouvernement.
Cet article présente les principales caractéristiques de cette taxe sur la base d’analyses préliminaires et d’un projet de Loi encore à l’état de brouillon. Il propose également quelques réflexions initiales sur les conséquences pour les contrats d’assurance-vie de type Branche 23.
Remarque importante : Le projet de Loi final n’ayant pas encore été publié, certaines dispositions pourraient évoluer. Une mise à jour sera effectuée en temps voulu.
Voici les points clés à retenir, notamment pour les intermédiaires financiers conseillant des clients belges utilisant des solutions d’assurance :
Le projet de Loi final doit être approuvé prochainement par le Conseil des Ministres, puis soumis au Conseil d’État, qui rendra son avis dans un délai de 30 jours.
Le projet de Loi sera ensuite déposé au Parlement. Comme le projet de Loi aura déjà été approuvé par le gouvernement, on peut s’attendre à ce que le Parlement apporte tout au plus quelques amendements techniques au texte.
L’approbation du Parlement est attendue pour octobre ou novembre 2025, ce qui permettra à la Loi d’entrer en vigueur le 1er janvier 2026.
À partir de 2026, les institutions financières belges devront retenir l’impôt sur les plus-values à la source, avec une option de opt-out pour les investisseurs. Cette mesure entraînera une charge administrative importante pour les banques et les assureurs et sa mise en œuvre dans les délais sera un défi.
Les plus-values réalisées sur des actifs détenus à l’étranger par des résidents belges devront être déclarées dans leur déclaration fiscale. Ils devront également demander l’exonération de 10 000 euros par le biais de la déclaration d’impôts, même si les actifs sont détenus dans une banque belge.
On peut s’attendre à ce que la nouvelle taxe sur les plus-values compliquera encore la déclaration fiscale déjà complexe des résidents belges à partir de l’exercice fiscal 2026.
La nouvelle taxe sur les plus-values peut rendre l’utilisation de l’assurance-vie Branche 23 (en unités de compte) plus attrayante pour les investisseurs belges. En effet, l’impôt sur les plus-values de ces contrats ne s’appliquant qu’aux plus-values réalisées lors d’un retrait ou d’un rachat, ils offrent un avantage en termes de report d’imposition.
De plus, le contrat d’assurance-vie permet de compenser les plus-values et les moins-values réalisées sur plusieurs années et crée une simplification administrative.
Asia’s wealthiest families are embracing private equity and alternatives. As high-net-worth (HNW) investors seek enhanced returns and diversification, interest in private markets is accelerating. When structured within insurance-based wealth solutions like Investment-Linked Insurance Policies (ILPs) – the product commonly used in Asia that combines investment and protection elements – these assets can support long-term wealth preservation, tax efficiency and succession planning.
In this article, Peter Tung, Tax and Legal Counsel – Asia, outlines how Utmost’s open-architecture approach enables the tailored integration of alternative assets into insurance-based wealth strategies.
This year is shaping up to be a strong one for private markets, with more high-net-worth (HNW) individuals diversifying into alternative assets. This trend is driven by increasing global instability and continued stock market volatility. Amidst this challenging environment, global private markets assets under management (AUM) are proving resilient – with assets under management nearing $13 trillion by the end of 2024.
Brendan Harper, Head of Asia and HNW Technical Services, outlines how Utmost’s multi-support insurance solutions can help HNW clients integrate private market investments into their long-term wealth strategies.
With private equity flows surging and high-net-worth investors doubling down on alternative assets, the landscape is shifting fast. But behind the headlines lies a complex operational reality – and a level of risk – that not every investor is prepared for.
Aidan Golden sat down with Domenico Iacono, Head of Group Complex Assets and Investment Data, to unpack what’s really driving HNW and UHNW demand – and how advisers can guide clients wisely through this evolving space.
Read the full interview for Domenico’s insights, practical guidance, operational examples, and essential adviser-focused commentary.
High-net-worth (HNW) families in Asia are increasingly turning to private equity (PE) and alternative investments to enhance returns and diversify portfolios. When structured within insurance-based wealth solutions like an Investment-Linked Insurance Policy (ILP) – the product commonly used in Asia that combines investment and protection elements – these assets can support long-term wealth preservation and succession planning.
Utmost evaluates alternative assets such as PE within the context of a client’s overall policy portfolio. Each proposal undergoes a rigorous, holistic review focused on diversification and risk-return enhancement. Key considerations include:
Only regulated instruments, such as ETFs, may be considered – and only for diversification. These are never core holdings and require full client risk acknowledgment.
Advisers are increasingly exploring Actively Managed Certificates (AMCs). Utmost can consider these, subject to the same due diligence standards, including transparency on any underlying non-bankable assets.
Ongoing, clear reporting on asset performance and valuation is essential for all accepted investments.
Successful integration of alternatives into insurance solutions depends on a strong three-way collaboration:
Incorporating alternatives into insurance-based solutions, such as an ILP, can offer:
Utmost specialises in bespoke insurance-based wealth solutions for Asia’s HNW families, offering:
Private markets and alternative assets offer compelling diversification and return potential for Asia’s HNW investors.
Utmost’s flexible insurance-based solutions can provide a robust framework for their tax-efficient integration – provided they enhance overall portfolio quality and meet our strict due diligence criteria.
With clear client risk acknowledgment and adviser alignment, these assets can serve as powerful tools for long-term growth and legacy planning.
This year is shaping up to be a strong one for private markets, with more high-net-worth (HNW) individuals diversifying into alternative assets. This trend is driven by increasing global instability and continued stock market volatility. Amidst this challenging environment, global private markets assets under management (AUM) are proving resilient.
According to McKinsey's Global Private Markets Report 2025, total private markets AUM – comprising asset classes such as private equity, real estate, private debt and infrastructure – reached approximately $12.9 trillion by the end of 2024.
Investors generally access private markets through a combination of:
These approaches introduce complexities not usually encountered with traditional bankable portfolios, including:
Multi-support insurance can help address these challenges. Depending on the policyholder’s jurisdiction, private markets can be accessed through insurance in a tax-compliant manner that:
Utmost’s ability to offer “multi-support” options enhances planning flexibility. The term “multi-support”, a phrase, coined in Europe, with no elegant English translation, refers to structuring an insurance policy using a combination of underlying investment models, including:
A multi-support structure can be visualised as a “bento-box”, where a combination of these models is compartmentalised within a single policy. This offers several advantages for private market investors:
Access to private markets via insurance varies by jurisdiction. Greater flexibility is typically available to policyholders in Asia, the Middle East, and Sweden. In contrast, policyholders in the UK or other European jurisdictions may be limited to compliant fund structures or full delegation of investment management.
With a global footprint, Utmost provides the technical expertise to guide policyholders and their advisers through these jurisdictional nuances.
Utmost operates under a robust regulatory framework and has deep experience in administering and valuing complex assets. Our multi-support solutions provide policyholders with a consolidated dashboard of their total holdings, supporting long-term planning and governance.
Multi-support insurance policies offer a flexible and compliant framework for integrating private market investments into long-term wealth planning. By combining different investment models within a single policy, HNW clients can tailor their portfolios to meet their specific goals, manage risk, and simplify succession planning across jurisdictions.
Read the full interview for Domenico’s insights, practical guidance, operational examples, and essential adviser-focused commentary.
Private markets are gaining traction among HNW and UHNW investors.
Research trends show that allocations to private equity, private credit and infrastructure are increasing as investors seek diversification, long-term performance and perceived stability. According to MSCI, private equity delivered a 13% annualised return from 2000 to 2024, compared to 8% for public equities. While illiquid, private markets are seen by some as offering lower volatility – a key consideration in today’s uncertain environment.
Generational wealth transfer is influencing investment attitudes.
With over $106 trillion expected to pass from older generations to Gen X and millennials, advisers are seeing a shift in risk appetite and openness to alternative assets. Younger investors may be more comfortable with illiquidity and innovation – but suitability must always be assessed on a case-by-case basis.
Access to exclusive opportunities is a key driver.
Private markets offer exposure to companies and strategies not available through public markets. For example, 80% of US companies with revenues over $100 million are privately owned. This exclusivity is attractive to many HNW clients seeking differentiated opportunities.
Operational complexity requires specialist support.
Private market investments involve capital calls, long lock-up periods and delayed valuations. Missing a capital call can have serious consequences. Advisers should ensure clients have the right infrastructure and partners in place to manage these demands effectively.
Insurance-based solutions can enhance structuring.
When integrated into insurance-based wealth planning, complex assets can support long-term goals such as tax efficiency, estate planning and succession. Utmost Wealth Solutions provides custody and administration services to help advisers manage these assets within compliant, scalable frameworks.
Advisers and family offices play a central role.
Many are building expertise in private markets but still face challenges managing the operational side. Utmost Wealth Solutions work with advisers to handle the administration, allowing them to focus on due diligence, asset selection and client strategy.
Knowledge gaps still exist – especially around tax.
Some advisers may underestimate the tax or regulatory implications of certain structures, such as US limited partnerships. Working with providers who offer technical and compliance support is essential to avoid unintended consequences and ensure client outcomes are protected.
For Spanish resident clients, naming a beneficiary in a life insurance policy is a simple yet vital step in effective wealth transfer.
Under Spanish law, life insurance contracts operate outside standard succession rules. This means the life insurance policy’s death benefit does not form part of the deceased’s estate. Therefore, the insurer will pay it directly to the named beneficiaries without the need to go through a probate process.
Article 88 of Insurance Contract Act 50/1980, of 6 October, ("Spanish Insurance Law") establishes this. It explicitly requires insurers to pay the policy’s death benefit to nominated beneficiaries as per the provisions of the insurance contract. This applies even if heirs or creditors of the policyholder make claims for it. The same article recognises the right of legitimate or forced heirs and creditors to claim reimbursement from beneficiaries for premiums paid to the detriment of their rights. However, this would be a separate process outside the life insurance policy.
Spanish Insurance Law also states that if there is no designated beneficiary at the time of the relevant life assured's death, the capital becomes part of the policyholder’s estate. If the policyholder and the life assured were different people, the death benefit is paid to the policyholder. If they were the same person, it is paid to the policyholder’s heirs. However, this process will require probate, delaying significantly its payment.
How to Designate: A beneficiary designation, and any future changes, can be made in the life insurance policy itself. It can also be done in a subsequent written statement, duly notified to the insurer, or in the policyholder’s will. This is a personal right of the policyholder.
Specific or Generic Nominations: Beneficiary designations can be specific or generic. No beneficiary consent is required for an effective appointment in Spain. For generic nominations (e.g., spouse, children, heirs), Article 85 of Spanish Insurance Law establishes specific interpretation rules. These must be considered when preparing a beneficiary nomination with a client.
Revocable vs. Irrevocable Nominations: Beneficiaries can be nominated on a revocable or irrevocable basis. According to Article 87 of Spanish Insurance Law, the policyholder may revoke a beneficiary designation at any time. This is unless they have expressly waived this right in writing. Additionally, this revocation must be made in the same manner as the initial nomination. However, in case of an irrevocable nomination, the policyholder will lose all economic rights over the policy. This includes the right to surrender, pledge, or assign the policy.
Including a beneficiary nomination ensures the insurance benefit transfers efficiently and according to the policyholder’s wishes. It avoids excessive administrative burdens or legal uncertainty. This provides policyholders with control and peace of mind. It also gives families clarity and support during an emotionally difficult time.
Professional advisers and insurers play a key role in ensuring Spanish resident policyholders understand this important feature and act on it. Therefore, it is strongly recommended to review existing and new life insurance policies for your clients. This confirms that adequate and up-to-date beneficiary nominations are in place. If there are no existing beneficiary nominations for certain policies, or if clients wish to amend previous ones (unless the existing nomination was irrevocable), this can easily be done by completing a beneficiary nomination form provided by the insurer.
Beneficiary nominations on life insurance policies are not common in the UK since they may not be legally enforceable under English law. However, this is a simple, effective, and legally binding succession planning mechanism in civil law jurisdictions such as France and Spain. As such, expat advisers should understand its significance from a Spanish law perspective. They should recommend this practice to Spanish resident clients as it will add value to their services.
Under Spanish law, a properly executed beneficiary nomination is not just best practice. It is a key legal mechanism for effective, secure, and timely succession planning.
Encouraging clients to take this simple step can significantly reduce complexity, costs, and emotional stress for their families. It also ensures wealth is transferred privately and efficiently to the right beneficiaries.
A recent ruling by the French Cour de cassation reinforces the legal autonomy of life insurance contracts in estate planning. The Court confirmed that the impact on heirs’ mandatory inheritance share is not a valid reason to challenge life insurance premiums, provided they are not manifestly excessive.
This decision enhances legal certainty for clients using unit-linked life insurance to structure their legacies.
Under French civil law, descendants are entitled to a fixed portion of the estate, regardless of the deceased’s wishes. Only the remaining quotité disponible may be freely allocated. These rigid rules can complicate planning for blended families, philanthropic bequests, or non-traditional heirs.
Life insurance – particularly unit-linked contracts – offers a civil law advantage: it exists outside the estate. Provided the premiums are not manifestly excessive, the policyholder may designate any beneficiary, thereby circumventing forced heirship constraints. The 2024 ruling strengthens this exception.
The case concerned a woman who passed away at age 83 in 2019, leaving her daughter as sole heir. During her lifetime, she contributed €274,800 to a life insurance policy, naming La Ligue nationale contre le cancer as beneficiary. In 2011, she made a final payment of €130,000 – approximately 43% of her total assets (€299,441.90 at death).
The daughter contested the contract, arguing that the premium was manifestly excessive and infringed upon her inheritance rights.
The Cour de cassation disagreed. It held that only the policyholder’s personal circumstances at the time of payment are relevant – not the impact on the heir’s share.
The Court reiterated four key criteria for assessing excessiveness:
This judgment aligns with established jurisprudence: premiums are assessed at the time of payment – not retrospectively – and only in relation to the policyholder’s situation, not the heirs’ outcome.
To mitigate legal challenges, advisers should demonstrate the contract’s utility to the policyholder, especially when premiums represent a significant portion of assets. French case law recognises the following indicators of utility:
These factors demonstrate that the contract served the policyholder’s interests – not merely those of the beneficiaries.
This ruling consolidates a long-standing legal principle: life insurance can be used to limit forced heirship rules, provided premiums are justified at the time of payment. Moreover, case law finding premiums to be manifestly excessive remains rare.
For high-net-worth individuals residing in France, unit-linked life insurance is more than a tax-efficient solution – it is a powerful legal tool for bespoke legacy planning.
Properly structured contracts, grounded in financial logic and aligned with the policyholder’s capacity, can withstand legal scrutiny – even when they challenge traditional inheritance expectations.
This decision reinforces the value of life insurance as a civil law tool for intergenerational wealth transfer, offering both flexibility and legal certainty.
The Cour de cassation ruling provides a timely opportunity for advisers to support clients navigating France’s complex inheritance framework. To help clients make the most of this legal clarity:
By applying these principles, advisers can offer clients both flexibility and peace of mind – ensuring their intentions are respected and their wealth is transferred efficiently and securely.
Nerea Llona, Tax and Legal Counsel for Spain and Latin America, outlines a recent client scenario involving cross-border property investment and the evolving Spanish tax landscape.
Drawing on her expertise, Nerea explains how tailored wealth structuring and proactive planning helped the client address regulatory challenges and optimise their position under current and proposed tax rules.
Nerea Llona, Tax and Legal Counsel for Spain and Latin America, outlines a recent client scenario involving cross-border property investment and the evolving Spanish tax landscape.
Drawing on her expertise, Nerea explains how tailored wealth structuring and proactive planning helped the client address regulatory challenges and optimise their position under current and proposed tax rules.
John, a 55-year-old divorced British national and UK-resident HNWI, is preparing to relocate to Madrid. His wealth is held in a complex investment structure that includes private company shares and alternative assets.
To streamline and optimise this transition, he requires a solution that will comply with Spanish regulations while simplifying his investment framework while ensuring compliance with Spanish tax and legal regulations.
John’s investment portfolio includes a 100% shareholding in a Maltese holding company (“Malta Holdco”). The company is managed and controlled by a professional services firm in Malta, which also acts as the appointed company director. Within Malta Holdco, there is a diversified investment portfolio comprising private equity, hedge funds and other financial assets. This portfolio is managed by a discretionary asset manager based in Switzerland.
To support John’s move to Spain, the proposed solution involves transferring 100% of his Malta Holdco shareholding into a Spanish-compliant life insurance policy as a premium in kind. This is executed via a share transfer agreement with the insurer.
Neither the policyholder nor their immediate family may, directly or indirectly, influence the management of the private company or the assets it holds.
Key features of the policy include:
Once the shares are transferred into the policy, Malta Holdco can be liquidated to further simplify the current structure and reduce associated costs.
This solution offers multiple advantages for John and his advisers:
Note: Each case involving private company shares must be assessed individually. Requirements may vary depending on the specific circumstances.
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Luxembourg – Madrid: Cross-Border Opportunities in Asset Insurance
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