Below are the highlights of the webinars:
What is Probate:
Probate is the legal process by which a deceased person's assets and liabilities are managed.
Families often simplify their affairs to minimize the estate, ensuring that key assets, like family businesses, are not included in the probate process. For families who do not engage in structuring, probate can become a complex, time-consuming, and costly process, particularly when assets are held across multiple jurisdictions.
Establishing a trust or foundation can significantly streamline the wealth transfer process. These structures remove assets from the probate process, ensuring uninterrupted management and succession, and protecting the family business from potential disruptions caused by inheritance disputes.
2. The Great Wealth Transition:
The term “Great Wealth Transition" refers to the significant transfer of wealth between generations, particularly among high-net-worth families in the Middle East. Failure to plan for wealth transition exposes families to risks such as family business succession disputes, personal succession issues, tax liabilities, and mental capacity concerns.
Planning for wealth transition should be initiated early to prevent disputes and challenges. Various legal structures such as wills, trusts, and companies are available for succession planning, each with its own benefits.
It’s crucial for families to establish long-term relationships with advisors to regularly review and update their wealth transition plans. Annual check-ups are recommended to account for changes in tax laws, family circumstances, and global economic shifts.
3. Planning for Family Disputes:
Family disputes typically revolve around control, money, and power, especially between family members actively involved in the business and those who are not. Major life events, such as the death of a family patriarch or matriarch, often trigger disputes.
Offshore trusts, particularly in jurisdictions like the Channel Islands and Bermuda, offer robust legal frameworks and predictability, making them ideal for protecting family assets.
Trustees, especially professional ones, are instrumental in protecting family wealth and ensuring proper governance. They act as fiduciaries with no personal financial interest in the assets, fostering impartial decision-making.
Contact your dedicated financial advisor with The Family Office to learn how strategies can be tailored to meet specific family needs.