
DVA
for
Individuals
High Net Worth Individuals and Family Offices can utilize a Deferred Variable Annuity ("DVA") to create tax efficiency around long-term investment strategies that may include stocks bonds, alternative assets (e.g., real estate, hedge funds, private equity, etc.), and mutual funds.
Investing through a DVA structure may produce significant tax savings, and bolster wealth accumulation through tax-deferred growth.
Potential
Benefits
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No K-1s or 1099s
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Tax deferral
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Unlimited contributions
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Enhanced asset protection
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No health underwriting
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Investment flexibility
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Efficient philanthropic and legacy planning tool
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Ability to transfer high-fee retail annuities tax free to a DVA via IRC Section 1035 exchange
Important
Considerations
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Ordinary income taxation on distribution of gains above basis
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10% penalty on gains if withdrawn prior to the annuitant turning 59 ½ years old
Who Should Consider Deferred Variable Annuities?
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Persons who highly favor tax-inefficient investments
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Persons likely to bequeath assets to a charity
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Persons with high-fee traditional variable annuities
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Persons wanting access to non-U.S. and domestic investments