Utmost Apex France | Frequently Asked Questions
This article is intended to answer frequently asked questions from British Expats in France considering investing in an Assurance Vie with Utmost (Apex France Policy).
For our full independent review of the Utmost Apex France Assurance Vie, see our article below:
The Unbiased Utmost Assurance Vie Review - The Wealth Genesis
What Is Apex France?
Apex (France) is an international, single-premium life insurance policy designed for medium to long-term investment (5-10 years or more). It allows you to invest lump sums into a range of unit-linked investments, which are managed together under a single policy for administrative ease and tax efficiency.
It essentially operates as a tax-efficient way of investing your money as a French resident, and has various fiscal benefits. For a full overview of how an Assurance Vie can help you, along with all of the tax benefits, see the below:
The French Assurance Vie - How Does It Work?
Who Can Invest In An Apex France Assurance Vie?
This policy is available to individuals and joint applicants (married couples or those in a civil partnership under the Pacte Civil de Solidarité (PACS) regime) who are UK expatriates or expatriates from other English-speaking countries, residing in France.
The policy can be opened for those with assets of £100,000 and above to invest.
How Does The Apex France Assurance Vie Help Me?
Apex France offers a flexible and tax-efficient way to invest for your future goals. It caters to various needs, such as seeking potential growth, generating regular income through withdrawals, or building a capital sum. It also allows you to diversify your investments across different risk profiles and invest in assets of your choice, along with receiving regulated financial advice from your designated adviser.
France is a punitive country with respect to taxation (especially compared to the UK). There are no ISAs, pension relief contributions etc.
As such, the Assurance Vie is one of the few investment accounts that can be used to reduce your tax in France.
Can I Choose The Investments In My Assurance Vie?
Yes, Apex France offers flexibility in investment choices. You can select from a wide range of permitted external assets, including shares, bonds, and collective investment funds, or opt for professional investment management through an Investment Adviser or a Discretionary Fund Manager.
Note, if you wish to deal with individual shares, we encourage clients to understand the additional risk associated with this, and individual shares can be very volatile (much more than tracker funds, ETFs and mutual funds).
What Are My Options For Accessing My Capital?
You have two main options for accessing your capital: regular withdrawals and single withdrawals.
You can make up to four withdrawals per policy year free of charge. You can also surrender your policy entirely if you need access to the full amount. However, remember that withdrawals are subject to minimum amounts and may be subject to charges depending on the frequency and timing.
Note also that if an adviser is charging commissions on your Assurance Vie, you may have lock in periods or early exit penalties.
The Wealth Genesis charges a flat-fee for all Assurance Vie accounts, meaning there are no lock-in periods or early surrender penalties. To understand more about our charges, see our fees below:
Our Flat Fee - The Wealth Genesis
How Is My Assurance Vie Taxed In France?
Apex France enjoys tax-efficient status in Ireland and offers tax advantages in France. The policy benefits from gross roll-up, meaning investment gains are not taxed in Ireland.
In France, you have the choice between flat tax or progressive income tax rates on gains from withdrawals or surrenders. Death Benefit proceeds may also qualify for reduced inheritance tax rates.
However, it is crucial to consult with your Insurance Intermediary or tax advisor for personalized advice as tax laws are subject to change.
What Happens To My Assurance Vie If I Move Back To The UK?
Utmost offers potential portability options for UK expatriates who may wish to return to the UK.
However, the portability process and the continued tax efficiency depend on individual circumstances.
Therefore, consulting with legal and tax advisers before moving is essential to ensure a smooth transition and understand any tax implications.
What Are The Charges Associated With Apex France?
An Assurance Vie has various charges, including product charges, adviser charges, and asset and investment costs.
These charges cover the setup and administration of your policy, adviser payment, and the costs associated with managing your chosen assets.
Your personalised Charges Details Document will provide a detailed breakdown of all applicable charges based on your chosen investment strategy and policy terms.
The Assurance Vie fee ranges between 0.20% per annum and 0.55% per annum, depending on the value you invest into the policy.
Annual adviser charges vary between 0.50% and 1.50%, again depending on how the firm you choose to work with structures their charges.
Fund fees can be between as low as 0.05% per annum (Vanguard tracker funds etc.) and as high as 2% per annum (actively managed funds).
Choosing The Right Assurance Vie For UK Expats
The Wealth Genesis is fully independent and regulated to provide advice to French residents. All our advisers are UK and French qualified, meaning we understand the intricacies associated with cross-border financial management.
Whilst most consultations are conducted over video or phone calls, we also hold an office in the South of France for local residents.
