New trust team and investment-only variable annuity establish company’s presence in trust, private wealth space
November 01, 2017 — DENVER–(BUSINESS WIRE)–Jackson National Life Insurance Company® (Jackson®) today announced the formation of its Private Wealth & Trust group, a specialized team focused on complex planning, investment management and tax mitigation strategies for high-net-worth and ultra high-net-worth families.
This dedicated group works with private banks and trust firms as well as families’ trusted tax and legal advisors on long-term, tax-efficient planning and wealth transfer opportunities.
“Since trust and private wealth firms operate on a fee-only business model, many of these entities haven’t traditionally utilized annuities in their practices,” said Justin Fitzpatrick, head of Private Wealth & Trust at Jackson National Life Distributors LLC (JNLD). “However, we’re hoping to change that. We believe fiduciaries should have access to the tax deferral and income control provided by variable annuities in a commission-free form that fits their business. We’re looking forward to building relationships with the firms in this space.”
In creating this product, Jackson sought input from trust and investment management firms and created Private Wealth Shield, an investment-only, tax-deferred variable annuity developed specifically for trusts and private banks. This new annuity is institutionally priced and available as a fee-based offering without commissions or surrender charges.
Help for HNW accessing tax-sheltered investments
By leveraging the tax-deferred nature of variable annuities and the investment-only feature of Private Wealth Shield, portfolio managers and trust officers can help high-net-worth and ultra high-net-worth individuals and families access tax-sheltered investments, lessen tax burdens and enhance flexible portfolio construction for long-term growth over multiple generations in agency and trust accounts. For irrevocable trusts, Private Wealth Shield provides greater income and tax control and removes the need for tax-related distributions, keeping more assets in the trust for improved growth potential.
“Private trustees have long relied on tax-deferred annuities, but Private Wealth Shield’s investment-only platform offers trust and private wealth firms a more powerful solution for mitigating taxes on nonqualified assets, particularly within the high-net-worth market,” said John Poulsen, executive vice president of sales strategy at JNLD. “As financial institutions and professionals navigate complicated fiduciary rules that can lead to difficult investment and tax management decisions, Private Wealth Shield presents a viable strategy that can help alleviate these challenges to meet the needs of their clients.”
Jackson is committed to providing education, service support and digital tools to increase the ease of doing business through a new product offering. Financial institutions that would like to learn more about Private Wealth Shield can contact the Private Wealth & Trust group at email@example.com.
Jackson is a leading provider of tax-deferred annuities for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of income, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $249.8 billion in IFRS assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and training on planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visit www.jackson.com.
*Jackson has $249.8 billion in total IFRS assets and $236.4 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of June 30, 2017). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards for reporting financial information. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson’s parent company.