An offshore bond is essentially a tax wrapper, designed to offer clients an alternative tax treatment for their investments relative to using unwrapped assets, if that would be beneficial to them. To make the wrapper as efficient as it could be, it is vital to set the policy up as a series of identical policies, also known as segments. Set up correctly, the Bond offers considerably more flexibility when it comes to withdrawals and assignments.
This calculator incorporates a set of planning assumptions to allow you to examine the effects of setting up an offshore Bond as a series of segments, and also gives an indication of how many segments your clients would need to choose to meet their requirements. It is not possible to cater for every specific eventuality, and you will need to make judgements based on your clients' individual circumstances.
We hope you will find this calculator useful as a tool in your planning process.