Asset Protection

One of the highest priorities for many of our clients is the protection of their assets. Planning to protect assets and to preserve wealth encompasses several aspects. We believe that the first concern is to ensure that current income is adequate, reliable and provided in a tax-efficient manner. We believe that the next concern is to plan for future income and capital gains to be generated without unnecessary exposure to taxation. The final concern is to ensure that assets remain in the family and pass to future generations in the most efficient way.

At all stages of our asset protection planning, taxation is the primary consideration. UK income tax, capital gains tax and inheritance tax have a serious detrimental effect on the protection of assets and it is important to take advantage of allowances and structures to minimise that effect. We feel that equivalent taxes in other jurisdictions need equal attention to minimise their effect and the possible combination of effect with UK taxes. We feel that the choice of jurisdiction is very important. For example, European laws on inheritance can be quite contrary to the wishes of the family.

Although taxation is the primary concern, the structure of inheritance planning is almost equally important. We feel that careful consideration must be applied to selecting the right structure(s) for each family situation. On-shore Trusts, Off-shore Trusts and Foundations all have their place in prudent inheritance planning. The provisions within the trusts require careful drafting, for each situation. For example, a client may wish to protect an asset, in the hands of his child, against the possibility of that child becoming divorced or against possible business failure.

Family Trusts frequently include several generations. On-shore Family Trusts can last for up to 80 years and Off-shore Family Trusts can last for up to 100 years. The use of off-shore companies and trusts has come under scrutiny in the past year or two but with careful and skilful planning, they can still have an important part to play in asset protection.

Specialist Solutions advises and facilitates advice across the full spectrum of asset protection for our clients. The overarching requirement of the advice is that it must lead to an efficient and robust structure to meet the precise needs of each client’s situation.

The Financial Services Authority does not regulate Trusts, Taxation Advice and some Offshore Investments.