Assurance vies - any views or advice, please?

[nectarine]

A financial adviser has recommended that we move money from our UK savings accounts into an assurance vie  -  one benefit being to ensure that the surviving spouse will receive the money in the case of death and that the stepchildren can't claim, which is what we wanted (complicated family situation! [:-))]).  Anyway, my husband turns 70 in the spring so there is some urgency involved as I understand that he can put more funds in before his 70th birthday and these are protected from succession claims.

We shall be moving to France in the spring and becoming tax residents, and I understand that assurance vies can also reduce your wealth tax liability.

Our financial adviser is proposing AVIP Multilib for this policy.  I haven't heard of them so would appreciate some advice as to how big they are, how stable they seem and whether this might be the best assurance vie company to choose.

I'm a complete novice at this and would appreciate some independent advice, on how these policies work and how to choose the best provider.  All advice, suggestions and information will be much appreciated.  Many thanks.

[Deimos]

I was recommended them by a IFA (in France).  It would have saved me tax, but when I worked it out the tax saved was pretty well the same as the scheme admin charges over the first 8 years (or maybe 5 - cannot remember).

With these schemes it always disappoints me that the financial institutions base their charges on the capital you are investing rather than the return they achieve.  They thus get all their money is they achieve good results of bad results - no motivation to them to do anything once you have signed the paperwork !!

One of the schemes I investigated allowed me to select the investment (any saving type investment I liked, including term deposits, standard bank deposits, with whoever I liked, etc.).  The scheme was just a  "wrapper" so the life assurance company did not actually have any responsibility for my money, they just did the admin.  Even so, there were "tie-ins" on the management fees and again the tax savings was pretty much the same as their fees during the 5/8 years of the scheme.

Thus I did not bother, preferring the flexibility to get at and move my money, simplified tax returns, etc., etc.

With IFA's and investment companies I am not prepared to pay them a fixed fee (e.g. percentage of investment capital) only a percentage of the returns they achieve.  So many financial investment schemes go "belly-up" that even though they might sound like a good idea and loads of people invest, so often they are just useless (e.g. Endowment policies).

Ian

[nectarine]

thanks, that's a good way to look at it.  I see from what is recommended that there are fixed charges and I should take them into account.  May I ask where you have invested your main capital, please - UK or France and, if so, where (if you're prepared to divulge, that is).

I appreciate any advice that you can give since I am in unfamiliar territory and husband's 70th birthday is drawing near, hence some tax loopholes close ...

Many thanks

[mint]

Ian's post has also been helpful to me.  I only know the most superficial bits and pieces about these investment vehicles and I just want to say "thank you" Deimos for clarifying so much.

[Benjamin]

Try this link http://www.completefrance.com/cs/forums/944066/ShowPost.aspx (sorry you'll have to cut and paste)

LesLauriers has in the past been very knowledgeable on the subject but I don't think I've seen him/her around for a while.

Those upfront charges shown on their website frighten me a bit. Certainly in the UK these days you have to provide gold plated service to get away with those fee levels.

As Ian says the financial services industry in whatever country is very good at taking their income irrespective of the level of performance achieved in the prevailing market conditions.