LUXEMBOURG ASSURANCE VIE

Any French resident can take out an assurance vie with a Luxembourg-based insurer. The contract remains subject to French law and you benefit from exactly the same tax advantages as a French assurance vie. However, Luxembourg insurers have designed their offering specifically for clients with significant assets to invest, and their contracts offer several key advantages over traditional French policies.

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The Triangle of Security

Assets linked to Luxembourg assurance vie contracts must be held with an independent depositary bank, approved by the Commissariat aux Assurances (CAA), Luxembourg's insurance regulator. The policyholder's assets are strictly separated from the insurance company's own funds and the depositary bank's assets, and the CAA closely monitors each insurer's compliance with solvency requirements.

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The Super Privilege

The holder of a Luxembourg assurance vie benefits from first-ranking creditor status over the assets representing technical provisions, with no upper limit. In France, this protection is capped at €100,000 per person per institution.

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Multi-currency

Unlike French contracts, a Luxembourg assurance vie can be denominated in euros, pounds sterling or US dollars. This is a particularly relevant advantage for French residents holding assets in another currency, including many of our English-speaking clients.

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A wider investment universe

Luxembourg contracts provide access to a much broader range of investments than traditional French policies, including international funds, ETFs and, depending on the management structure chosen, individual securities.

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Management options

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Standard management within the unit-linked fund list

For the majority of our clients, managing the contract within the insurer's available list of units of account is entirely sufficient. It allows us to build a diversified and well-performing allocation, making extensive use of ETFs, without any additional costs associated with a dedicated structure.

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Specialised Insurance Fund (FAS)

The FAS is designed for investors who wish to manage their own investments with complete freedom in their choice of assets, without being limited to the insurer's fund list. It is particularly well suited to experienced investors who want to manage their portfolio directly while benefiting from the favourable tax framework of the Luxembourg assurance vie. A minimum investment of €250,000 is generally required.

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Dedicated Internal Fund (FID)

The FID allows portfolio management to be delegated to an independent third-party asset management company, which will implement a personalised investment strategy within an unrestricted investment universe. This option is suited to clients seeking bespoke management without direct involvement in investment decisions. Additional costs apply, reflecting the fees of the appointed asset manager.

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Combining management structures

These management options are not mutually exclusive. It is perfectly possible to combine within a single contract a standard unit-linked allocation, a FAS and a FID, depending on your objectives and investor profile.

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Our support

At Optimal Conseil Patrimoine, we have solid experience in setting up Luxembourg assurance vie contracts, whether through standard management, a FAS or a FID. We guide you through the choice of insurer, the structuring of your contract and the selection of investments, with complete objectivity and full fee transparency.