Asset Structuring Club

ASC Dictionary

A growing reference library for the terms people search when they want to understand asset structuring, PPLI, trusts, family office planning, privacy, tax efficiency and succession.

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Reference library

59 terms, each with its own page.

Many readers first search for the meaning of a term. The ASC Dictionary gives them a simple definition first, then points them into the wider ASC learning library.

Definition

Asset Structuring

The coordinated organisation of wealth through structures, documents, entities and instruments so assets can be protected, grown, preserved and transferred with greater clarity.

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Wealth Architecture

A system view of wealth that connects legal structures, tax position, liquidity, governance, reporting, succession and family decision making.

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Family Office

A coordinating function that helps a family organise wealth, advisors, governance and long term planning. It can be formal or informal, internal or outsourced.

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Single Family Office

A dedicated private office serving one family, typically created when wealth complexity, privacy requirements and coordination needs justify an internal team.

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Multi Family Office

A platform that serves multiple families by coordinating planning, structures and advisory functions without each family needing to build a full office internally.

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Intergenerational Planning

Planning that helps wealth, values and decision making move from one generation to the next with less friction and greater continuity.

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Succession Planning

The preparation of people, documents, governance and liquidity so an ownership or leadership transition can happen without confusion.

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Estate Liquidity

Accessible capital needed to settle taxes, debts, expenses, distributions and family obligations when death or transition occurs.

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Liquidity Planning

Planning for when cash is needed, where it will come from, who can access it and what assets should not be forced to sell at the wrong time.

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Asset Map

A consolidated picture of what a family owns, how those assets are held, where they sit, and who controls or can access them.

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Knowledge Bank

An organised record of documents, contacts, instructions, assets, structures and key decisions that helps a family operate during normal periods and transition periods.

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The 72 Hour Test

A practical diagnostic asking whether the family can access information, authority and liquidity in the first 72 hours after a major incapacity or transition event.

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Family Governance

The rules, meetings, roles and communication practices that help a family make decisions together around wealth and responsibility.

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Family Constitution

A written family governance document that captures values, decision rules, roles, succession principles and expectations for future generations.

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Family Council

A regular forum where family members discuss governance, education, communication and decisions relating to shared family wealth or enterprise.

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Next Generation Preparation

The process of preparing heirs to understand wealth, responsibility, governance, family values and the structures they may one day inherit.

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Trust

A legal relationship in which assets are held by trustees for beneficiaries according to the terms of a trust deed and applicable law.

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Settlor

The person who establishes a trust and contributes assets or defines the trust arrangement. Some jurisdictions use the term grantor or trust creator.

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Trustee

The person or institution legally responsible for holding and administering trust assets according to the trust deed and fiduciary duties.

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Beneficiary

The person or class of persons intended to benefit from a trust, policy, estate or other structure.

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Protector

A person or office that may be given oversight powers in a trust structure, such as approving trustee decisions or replacing trustees.

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Letter of Wishes

A non-binding guidance document often written by a settlor to help trustees understand intentions, values and distribution preferences.

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Fiduciary Duty

A duty to act in the interest of another person or group, often relevant to trustees, directors, advisors and others managing wealth structures.

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Dynamic Trust™

A trust conversation introduced in ASC materials that emphasises privacy, control, flexibility and family adaptability.

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Private Placement Life Insurance (PPLI)

A private life insurance structure often used by affluent families as part of broader wealth planning because it may combine investment, legal, tax and succession features inside one wrapper.

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Tolani Flow®

A wealth architecture framework formalised by Dr. Sanjay Tolani that brings together consolidation, privacy, liquidity, cross border efficiency and intergenerational continuity.

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Insurance Wrapper

A broad term for using an insurance policy structure to hold or support wealth planning goals, often discussed in liquidity, succession and tax efficiency planning.

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Life Insurance as an Asset Class

A way of analysing life insurance not only as protection but also as a planning asset with liquidity, transfer, reserve and structural roles.

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Policyholder

The person or entity that owns an insurance policy and holds contractual rights under the policy, subject to the policy terms and law.

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Insured Person

The person whose life is insured under a life insurance policy. The insured person may or may not be the policyholder.

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Beneficiary Designation

The instruction naming who should receive policy proceeds or certain benefits when a triggering event occurs.

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Death Benefit

The amount payable under a life insurance policy upon the insured person’s death, subject to the terms of the policy.

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Cash Value

The value that may accumulate inside certain life insurance policies and may be relevant to surrender, borrowing, collateral or policy performance.

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IRC §7702

The US Internal Revenue Code provision defining what qualifies as a life insurance contract for US federal tax purposes.

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Cash Value Accumulation Test (CVAT)

A test under IRC §7702 used to determine whether a contract qualifies as life insurance for US federal tax purposes.

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Guideline Premium Test (GPT)

A test under IRC §7702 that limits premium funding relative to policy benefits and helps determine life insurance qualification.

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Modified Endowment Contract (MEC)

A US tax classification for certain life insurance contracts that are funded beyond statutory limits, changing the tax treatment of distributions.

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Tax Efficiency

The effort to reduce unnecessary tax leakage through better timing, ownership, structure and coordination, while staying within the applicable law.

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Asset Protection

The planning discipline of separating, organising or legally protecting assets so families are less exposed to creditor claims, disputes or unnecessary erosion.

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Holding Company

A company used to hold shares, investments, intellectual property or other assets, often as part of a broader ownership or governance structure.

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Offshore Company

A company incorporated outside the owner’s home jurisdiction, often used for holding, trading, investment or structuring purposes depending on law and tax rules.

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Foundation

A legal structure used in some jurisdictions for holding assets, governance, philanthropy or succession planning, depending on local law.

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UBO

Ultimate Beneficial Owner. The natural person who ultimately owns or controls an entity or arrangement.

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UBO Register

A registry or reporting mechanism that records beneficial ownership information for companies, trusts or other arrangements, depending on jurisdiction.

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CRS

The Common Reporting Standard, an international reporting regime for financial account information that affects how structures and accounts are reported.

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FATCA

The Foreign Account Tax Compliance Act, a US regime affecting reporting and documentation around foreign financial accounts and certain structures.

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Tax Residency

The jurisdiction or jurisdictions that treat a person or entity as tax resident under their rules, often affecting reporting and taxation.

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Domicile

A legal concept often connected to a person’s permanent home or long term connection to a jurisdiction, sometimes relevant to estate or inheritance tax.

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Situs Assets

Assets considered located in a particular jurisdiction for legal or tax purposes, often important in cross border estate planning.

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Probate

A legal process through which a court validates a will or administers estate transfer, depending on jurisdiction.

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Estate Tax

A tax that may apply to the transfer of assets at death in certain jurisdictions.

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Inheritance Tax

A tax that may apply to assets received by heirs or beneficiaries, depending on jurisdiction and relationship.

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Gift Tax

A tax that may apply when assets are transferred during lifetime, depending on jurisdiction and exemptions.

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Capital Gains Tax

A tax that may apply when an asset is sold or disposed of for more than its tax basis or acquisition cost.

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CFC Rules

Controlled foreign company rules that may tax or report foreign company income to resident owners, depending on the jurisdiction.

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Economic Substance

Rules requiring certain entities to show real activity, management, people or presence in a jurisdiction, depending on local law.

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Due Diligence

The review process used to understand a client, structure, transaction, risk, documentation or compliance position before proceeding.

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KYC

Know Your Customer. A compliance process used by financial institutions and professionals to identify clients and understand risk.

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AUA vs AUM

AUA means assets under administration, while AUM usually means assets under management. The distinction matters when discussing who administers assets versus who makes investment decisions.

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Insurance dictionary expansion

Life insurance, policy and wealth architecture terms.

These definitions support the new Insurance Knowledge Hub and help beginners move from basic vocabulary into deeper asset structuring concepts.

Insurance definition

Policyholder

The person or entity that owns the policy and controls policy decisions.

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Life Assured

The person whose life is insured under the policy.

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Beneficiary

The person or entity entitled to receive the policy benefit.

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Premium

The payment made to keep an insurance policy in force.

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Sum Assured

The amount the insurer promises to pay when the covered event occurs.

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Death Benefit

The amount paid to beneficiaries when the life assured dies.

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Cash Value

The accumulated value inside a permanent life insurance policy.

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Surrender Value

The amount available if a policy is cancelled, subject to charges and terms.

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Policy Loan

A loan secured against the cash value of a policy.

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Underwriting

The process insurers use to assess risk and decide policy terms.

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Rated Premium

A higher premium charged when the insured presents elevated risk.

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Exclusion

A condition or event that the policy does not cover.

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Rider

An added benefit or modification attached to a base policy.

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Grace Period

A short period after a missed premium during which coverage may remain in force.

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Contestability Period

The early policy period when an insurer may investigate misrepresentation.

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Nomination

The act of naming who should receive policy proceeds.

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Policy Schedule

The summary page showing key facts of the policy.

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Policy Illustration

A projection of how a policy may perform under stated assumptions.

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Guaranteed Column

The portion of an illustration that shows contractual guarantees.

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Non Guaranteed Projection

Illustrated values based on assumptions that may not occur.

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Term Insurance

Coverage for a defined period with no cash value.

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Whole Life Insurance

Permanent insurance with guaranteed death benefit and cash value.

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Universal Life Insurance

Permanent insurance with flexible premiums and policy values.

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Indexed Universal Life

Universal life where interest crediting may be linked to an index.

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Variable Universal Life

Universal life with investment subaccounts that can rise or fall.

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Investment Linked Policy

A policy combining insurance coverage with investment fund exposure.

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Critical Illness Insurance

Coverage that pays on diagnosis of specified serious illnesses.

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Disability Income Insurance

Coverage that replaces income when disability prevents work.

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Annuity

A contract that provides income for a period or lifetime.

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Deferred Annuity

An annuity where income begins at a future date.

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Immediate Annuity

An annuity where income begins shortly after premium payment.

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Joint and Survivor Annuity

An annuity that pays while either of two people remains alive.

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Group Life Insurance

Coverage provided through an employer or group arrangement.

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Key Person Insurance

Business coverage on a person whose loss would damage the business.

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Buy Sell Agreement

A business agreement governing ownership transfer when an owner exits, dies or becomes disabled.

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Premium Financing

Borrowing to fund insurance premiums, usually with collateral and spread analysis.

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Takaful

A Sharia aligned risk sharing arrangement based on mutual guarantee.

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Tabarru

A contribution into a takaful risk pool for mutual support.

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Wakalah

An agency model used in takaful where the operator manages the fund for a fee.

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Insurability

A person’s ability to obtain insurance under acceptable terms.

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Insurability Window

The limited period when coverage is available at favourable terms.

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Beneficiary Review

A review to confirm that policy proceeds would go to the intended person or structure.

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Policy Brief

A plain language summary that helps beneficiaries understand a policy.

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Needs Analysis

The process of calculating the amount and type of coverage required.

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Income Replacement

Coverage designed to replace the economic support of the insured.

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Estate Liquidity

Cash available to settle estate costs, taxes and obligations.

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Human Capital

The economic value of a person’s future income, skills and relationships.

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Insurance Architecture

A coordinated system of policies, ownership structures and review disciplines.

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Living Benefits

Policy benefits available during the insured’s lifetime.

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Pre Approved Liquidity

Accessible policy cash value or loan capacity that does not require new bank approval.

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Policy Ownership

The legal control of a policy and its rights.

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Trust Owned Policy

A policy owned by a trust for estate or succession planning reasons.

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Second To Die Policy

Coverage that pays after the death of the second insured, often used for estate liquidity.

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Cross Border Policy Planning

Planning for policy performance across multiple jurisdictions.

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Portability

A structure’s ability to keep functioning as a family moves across jurisdictions.

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Tax Deferral

The postponement of tax recognition until a later event or distribution.

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Loan Spread

The difference between borrowing cost and policy or investment return in financing structures.

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Review Covenant

The discipline of reviewing policies and structures regularly.

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Policy Lapse

The termination of coverage because required premiums or values were not maintained.

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Paid Up Additions

Additional permanent insurance purchased by dividends or extra premiums.

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Dividend Option

The method selected for using policy dividends.

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Cost of Insurance

The internal charge for mortality risk in certain policy types.

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Surrender Charge

A charge applied when a policy is cancelled or surrendered early.

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Waiver of Premium

A rider that may waive premiums if disability occurs.

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Maturity

The point when a policy reaches its contractual end or pays according to its terms.

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Proof of Claim

Documents required by the insurer before benefits are paid.

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Claims Procedure

The steps beneficiaries must take to receive policy proceeds.

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Family Protection Gap

The difference between what a family would need and what current coverage provides.

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Guaranteed Income Floor

A base level of income supported by contractual sources rather than variable markets.

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