Juni nyhed 2015.

 

 


A  W I L L

versus 

A  F O U N D A T I O N

plus provision for

I N H E R I T A N C E   T A X

&  F O R C E D   H E I R S H I P

Making a Will

Overview

Your Will lets you decide what happens to your money, property and possessions after your death.

If you make a Will you can also make sure you don’t pay more Inheritance Tax than you need to.

You can write your Will yourself, but you should get professional advice, for example from Anglo-Corp, to make sure your Will is interpreted in the way you wanted.

You need to get your Will formally witnessed and signed to make it legally valid.

If you want to update your Will, you need to make an official alteration (called a ’codicil’) or make a new Will.

If you die without a Will, the law says who gets what.

Write your Will

The Will should set out:

•  Who you want to benefit from your Will

•  Who should look after any children under 18

•  Who is going to administer your estate and carry out your wishes after your death

•  What happens if the people you want to benefit die before you

When you need professional advice

•  You share a property with someone who isn’t your husband, wife or civil partner

•  You want to leave money or property to a dependant who can’t care for themselves

•  You have several family members who may make a claim on your Will, eg a second spouse or children from another marriage

•  Your permanent home is outside the UK

•  You have property overseas

•  You have a business

Keep your Will safe

You can keep your Will at your home or store it with:

•  Your solicitor

•  Your bank

•  A company that offers the storage of Wills – you can search online

You should tell your executor (the person you’ve chosen to carry out your Will), close friend or relative where your Will is.

A Will does not exempt you from inheritance tax

Nor does a Will eliminate forced heirship

Setting up a foundation

For further information about foundations – please visit our website, click here to go straight to the page.

When properly drafted a foundation Will do away with inheritance tax

and nullify any call for forced heirship

The alternative solution

Avoiding enforced heirship by using trusts and foundations

For further information about foundations – please visit our website, click here to go straight to the page.

History has proved that private wealth was and will continue to be in peril and therefore it needs protection. Trusts, the modus operandi of choice, have been around for centuries and have been unable to provide an unfaltering defence. Trusts have a long history and an established body of jurisprudence. Ironically, there is a structure which has been around for less than a century and due to its constantly evolving nature, could in fact be the alternative and final solution to such an ongoing problem. We will discuss the concept of the private interest foundation and revolutionary structure of the private interest foundation as means to avoid forced heirship.

Foundations

Private interest foundations were conceived in Liechtenstein in 1926 as a preventive measure to protect family assets during times of financial instability, and to compete with the long-standing Anglo-Saxon trust. And since privacy supports personal freedom, the private interest foundation became the private wealth protection of new smart wealthy men. In essence, a private interest foundation is dressed like a corporation, yet has the soul of a trust.

Private interest foundations have numerous attractive features that make them more adaptable, versatile and flexible structures in comparison to their Anglo-Saxon elders. The main ones are:

• Duration: no perpetuity limitations

• Confidentiality: all the parties in the foundation can remain anonymous while the employees are subject to strict confidentiality rules punishable with monetary fines and incarceration

• Charitable or for a profitable purpose; a general class of beneficiaries may be appointed, as well as unborn beneficiaries

• Separate patrimony: the assets belong to the foundation, not to the founder

• Minimum reporting requirements: foundations that do not pay taxes do not need to file tax returns or financial statements

• Contractual freedom: founders can include any clauses or distribution plans with regards to the assets held; this includes post-mortem distributions, even if forced heirship provisions prevent it.

Never, in the history of foundations, has a successful forced heirship claim been made. Numerous cases dealing with confidentiality, beneficiaries’ and creditors’ rights to information, and even the sequestering of assets owned by the foundation, have been seen by the courts. But none of them have been able to challenge the validity or functionality of the foundation due to the fact that for all legal purposes the assets held by the foundation are completely segregated from the assets of the founder. This separate class of assets may not be sequestered, garnished, or subject to precautionary action or measure, except for the obligations incurred or damages caused during the performance of the purposes or objectives of the foundation.

Conclusion

Forced heirship is the Black Plague of the 21st Century. And with wealth and fortune being made every second, individuals will constantly seek protection. Rich individuals, family businesses, and the likes have constantly been searching for ways to ensure the security and protection of their estates, and as such, the legal world has always provided the necessary alternatives. The real dilemma is whether to utilize an ancient institution that has upheld the same ideals and principles since its creation or to go against the tide and employ an efficient structure that will evolve with time to provide the ultimate solution. Trusts have attempted to bypass inheritance and matrimonial regime provisions for years, and have managed to successfully achieve it only a few times. Foundations on the other hand have a limited set of case law to make reference to, but the few cases that have been put to the test have produced the desired outcome. Forced heirship can be avoided through careful estate planning. Location of assets, type of legislation, individual intention, and country of domicile, are all factors that play a role in choosing which legal framework to build upon.

Under forced heirship rules, a person is not free to dictate who will inherit his or her estate. Instead, forced heirship laws require a deceased person’s estate to pass to one or more blood relatives (usually children and grandchildren) and/or a surviving spouse, who are referred to as the “protected heirs.”

Forced heirship laws vary widely from country to country. In some countries the deceased person cannot in any way alter the forced heirship disposition of their estate, while in other countries the deceased person can direct that a portion of their estate can pass outside of the forced heirship rules if a portion of the estate is left to protected heirs. In other countries forced heirship can be avoided by establishing a suitable private interest foundation.

Anglo-Corp Limited

100 Pall Mall

St James

London SW1Y 5NQ

Call: +44 (0) 1473 249 024 / +45 7044 4024

Email: info@anglo-corp.co.uk

Skype: anglo-corp

www.anglo-corp.co.uk

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