Trust Services: how to get your wealth protected

Trusts, private foundations, foreign investment companies, residency and citizenship planning, stand-alone or combined together represent possible solutions to get your wealth protected against the growing threats affecting these though times. Nonetheless and from case to case, trusts may have an edge over.

In a rapidly changing world, it is normal to pursue extra-coverage and be as much prepared as possible for future threats: trusts created for asset protection and estate planning ensure that wealth is preserved and passed onto next generations in a tax efficient way. Wealth planning services are more and more important, also due to “black swans” events, such as Covid-19 arise.

Threats

Threats to wealth are numerous and may derive from everywhere: from professional mistakes, wrong investments, family disputes ; unless properly protected, the assets could be frozen creating instability, economic risks and downturns. These threats are to be taken into serious account.

How to efficiently protect your wealth

While there is no one-size-fit all approach, nor the absolute certainty the assets will be preserved, the implementation of wealth planning solutions such as trusts, private foundations, foreign investment companies, residency and citizenship planning can help to elaborate, mitigate and minimize the risks and safeguard the family assets. In details:

  • Trust: generally, a trust is the legal relationship created during the lifetime or on the death of a person, the settlor, whereby assets are placed under the control of a trustee, for the benefit of beneficiaries or for a specified purpose. It is important to note that (i) the assets constitute a separate fund and are not a part of the trustee’s own estate; (ii) title to the trust assets stands in the name of the trustee or in the name of another person on behalf of the trustee; (iii) the trustee has the power and the duty, in respect of which it is accountable, to manage, employ or dispose of the assets in accordance with the terms of the trust and the special duties imposed upon it by law. The reservation by the settlor of certain rights and powers, and the fact that the trustee may himself have rights as a beneficiary, are not necessarily inconsistent with the existence of a trust. A trust will be governed by the law chosen by the settlor. The choice of law may be express or be implied in the terms of the instrument creating the trust.
  • Private Foundation: always perceived as alternative to trusts, private foundations are different in many aspects including and foremost for legal personality. In common they have the possibility to segregate the family wealth in view of asset protection and estate planning.
  • Foreign investment companies: set up in countries eligible to benefit of corporate, legal and tax advantages to hold different types of assets and undertake financial activities. Typically designed to own shares in other companies, ; financial assets, other investments such as real estates, artworks, luxury goods and much more.
  • Residency and citizenship planning: these solutions are designed to take advantage from legal and tax system of the country of destination while to abandon such system of the country of origin. The factors that influence the choice of residency and citizenship are many, and different for each individual and may range from fiscal aspects to economic scenarios. Find more about residency planning here.

Fidinam Group

Fidinam provides wealth planning solutions through holistic approach since 1960. As of 2007 and 2018 respectively, the fully-fledged trustee companies in New Zealand and Hong Kong are operated . As common law countries, both New Zealand and Hong Kong represent solid, reliable and reputable jurisdictions for establishing trusts. The Fidinam New Zealand and Fidinam Hong Kong trustees belong to the Fidinam Group. 

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