We are daily asked to help with and fix structures established without the proper advice or even worst, structures that were "bought" over the internet.
International Asset Protection, International Estate and Tax Planning, or Multi-Jurisdictional planning as we call it, is an area of planning endemic with potential pitfalls for the unwary and ill-prepared, with a complex labyrinth of rules, entirely out of proportion to the frequency in which most traditional legal practitioners confront them. This makes it a highly specialised practice area, with little to no room for errors, as mistakes are very costly and sometimes impossible to correct.
It is NOT about the establishment/registration of the company/corporation/trust or foundation; it is however about the understanding of how to use this structure not to create a tax waste or double tax scenario, ending up with a structure in contravention of legislation you didn't even know existed or have a structure unable even to open a bank account.
Sadly most realise their problem only when it is too late when funds are lost or stuck due to some taxation dispute, when profits need to be distributed and are blocked, or when they receive a notice from a governmental organisation.
Before you dabble into any international structuring, please consult the correct specialist.
We have assisted clients or advised on transactions in 78 countries in the past two decades, book a complimentary virtual meeting today, or read about what type of scenarios we have assisted clients with in the past.
Uchi Advisory is a legal advisory firm.
At Uchi, we focus on multi-jurisdictional strategies focusing on both financial as well as human capital, by incorporating: International Estate Planning, International Succession Planning, Asset Protection, Family Governance, and International Tax Planning, to implement and manage multi-generational structures, that will assist families to transfer wealth, values and the family's core strengths from one generation to the next.
We live in a world where meeting people that have businesses, family or investments in multiple countries is a daily occurrence, the consequence is that there is a multitude of legislative and regulative rules impacting that person's personal estate. This creates a conundrum for any person exposed to multiple jurisdictions:
“The need to know what you don’t know.”
Like an iceberg there is more unseen than there are seen, the international arena is the same. There is more to know than meets the eye of the average advisor.
There isn’t a book or a manual that you can grab off the shelf telling you the what, where, and when as each party's circumstance are different and thus different rules, and strategies apply. Most individuals/families do not have the experience or reference to understand the complexities of an International Asset Protection and Exit Strategy.
Understanding international laws is no longer only a concern for multinational companies, with the ease at which people can live, invest and/or do business outside of their home countries, increased the importance of understanding how different laws affect their lives. Not to mention readily available second residency schemes, some with very onerous fine print, being marketed and sold as a mere product.
INTERNATIONAL ASSET PROTECTION STRATEGIES
Committed to protect your Privacy
Asset protection is a term most people do not understand, and therefore often neglected. But failing to have a well-thought-out asset protection strategy could mean that your most vital assets are at risk in the event creditors, competitors or authorities from local or international jurisdictions move to file a claim against you.
“The best time to plan is precisely that time you think there is no need for planning”
INTERNATIONAL ESTATE PLANNING STRATEGIES
Making sure your last wishes and intentions are fulfilled
In its basic form, Estate and Succession Planning can be defined as the process of arranging, managing, protecting and transferring both financial capital as well as human capital from one generation to the next. So that one’s family and other beneficiaries may enjoy and continue to enjoy the maximum benefit from one’s estate during one’s lifetime and after one’s passing or incapacitation, no matter where in the world the assets are. Simultaneously ensuring family value systems and principles are conveyed from one generation to the next.
Generally, people think that if you have a will and a trust, you have done your estate planning. Remember, estate/succession planning is always about the small and technical detail, plan for every thinkable scenario and never assume anything:
INTERNATIONAL TAX STRATEGIES AND ADVISORY
Achieve Your Goals
Multi-Jurisdictional matters imply a 360-degree point of view on local, regional and overall international legislation and legal requirements that apply to your business in order to advise in areas such as:
Development of tax efficient structural strategies focused on the mitigating tax wastage
Establishment of Treasury management Structures, recipient entities, and repatriation techniques
Holding company location and effective management
Tax effective financing and thin capitalization rules
Application of Tax Treaties
Advanced Tax rulings where applicable
FAMILY GOVERNANCE STRATEGIES
Family Governance Services is much more than traditional estate or planning. Most professionals have personal stories of clients and families who did traditional estate or succession planning, designed for the distribution of the wealth at the lowest tax cost and found that both the family and the fortune were lost in a short time.
Family Governance begins with the idea that clients can pass both their values (human capital) and their valuables (financial capital) to their children, and focus not only on the planning for the division of financial capital which usually ends when the client passes away.
Families that have been successful in passing wealth and businesses from generation to generation take a different approach. They implement a comprehensive strategy that integrates both human capital as well as financial capital and actively manage both the assets and the family relationships continually.
UCHI as Coordinating Strategist
Your own Virtual Multi-Jurisdictional Confidant
Already have your own advisors and need help with a particular matter or looking for someone to work through your current strategy to ensure nothing is amiss?
If that is you, welcome to UCHI Outsourced your virtual Multi-Jurisdictional Advisor.
One of the key reasons for Uchi’s establishment was to fill the need created when various advisors, advise clients on different and specific aspects of their portfolio, with no-one taking a holistic overview; this typically results in tax waste, and double taxation, whether on income, dividends, royalty, rent, capital gains or death taxes; or adverse liquidity problems, such as SITUS Tax, which is one of the points we discussed.
This can be explained in the following example:
A founder hands each advisor (legal, financial, banking, family, auditing) a piece of wood and a carving knife, during his/her lifetime, with a specific instruction to carve a particular piece of the whole puzzle. However, as these advisors are rarely introduced to each other, or work in unison, the effect is, that the puzzle’s scale is never understood. Then at the death of the client, when all these puzzle pieces are put together, to build the puzzle, most of the time for the first time. Inevitably this turns out as a recipe for failure, as the puzzle pieces, will not fit to make up the “picture” the client intended, not to mention double death taxes or situs taxes.
At UCHI we collect all these puzzle pieces, and build that puzzle, while the client is alive and we have the opportunity to test what will happen; this process allows the coordinating planner to understand the consequences of any current estate planning strategy, and to identify shortcomings, with the opportunity to implement corrective measures and adjust his/her estate planning strategy.
As explained, our aim is not to replace any of your advisors, unless required to do so; rather, to work with your advisors, to ensure that your puzzle, does in fact, create the picture you originally intended, when all the puzzle pieces are put together, in execution.
Contact Uchi today to determine a holistic picture to see where you stand, from a Multi-Jurisdictional Point of view, yourself. The ultimate intention should be to develop a single Multi-Jurisdictional Strategy, incorporating all assets and all countries.
Remember, One single vulnerability is all an attacker needs!