INSIGHT
UAE announces new Federal Personal Status Law20 December 2022
Protecting and preserving your estate for the benefit of your family and making arrangements for the passing on of family wealth can be a complex and challenging process – we help you navigate your way through the tax and legal issues you will encounter on your way.
Every family and situation is different and we aim to be responsive to your priorities and concerns and can advise you on the most appropriate form and terms of Wills and Trusts to ensure that they meet your objectives.
Making a Will is one of the first essential steps in planning for the future, and careful drafting of documents will reduce the likelihood of claims against your estate. Trusts can be created during your lifetime or as part of your Will – whichever way you chose, we can do this for you. Our team provides advice to structure Wills to benefit your intended beneficiaries in the most tax efficient way, ensuring full use is made of your inheritance tax allowances. We will help you to arrange your will to ensure fairness and how to provide for young or otherwise vulnerable beneficiaries. If you have assets in more than one jurisdiction, additional complications can arise. We advise on all international aspects of Wills including the implications of different succession laws and procedures in different jurisdictions, ensuring compliance with other relevant and local laws.
We advise on the most appropriate structure to pass down assets whether in the form of inherited wealth or a family business.
Creating a Trust during your lifetime enables you to pass family assets to the younger generation whilst, if you wish, maintaining control over those assets through acting as trustee. Your hard-earned wealth can be protected from third party risks or from the risk of spendthrift beneficiaries. They can also play a part in minimising tax, in protecting against adverse litigation and are an ideal tool for preserving confidentiality.
We advise with all aspects of the administration of Trusts during their life-time including tax compliance and, as Trusts do not last forever, on the most efficient methods of transferring assets out and the tax consequences of this.
Our team offers specialist advice on International Trusts in partnership with Trusts service providers located in numerous international jurisdictions. Constituting the Trust in a neutral jurisdiction may assist with administration and compliance for families with members resident in more than one country.
We can also advise in relation to the creation of charitable and philanthropic Trusts.
A family investment company, often in conjunction with a Trust, can also be used to pass down wealth. A corporate structure may be more appropriate to your circumstances and needs. A family investment company can provide a way of sharing financial benefit without loss of control and is a particularly useful structure to adopt following the sale of a family business when looking to share and pass down disposal proceeds in an orderly and tax efficient manner.
In brief
19 July 2022
By Frank Cook and Helen Briant