A change of country of residence, divorce, family inheritance and succession… one goes through so many changes and events in the course of a lifetime. At PC&M, we believe that these changes should be seized as opportunities to rethink the structuring of our assets and to adapt existing wealth structures to reflect these life changes and meet people’s evolving expectations.
The legal environment also demands this progress. As the legislative and regulatory environment becomes more and more complex, wealth structures must be aligned with current regulatory requirements.
Life dynamics and legal developments call for action! What can you do?
We explain it here, paying special attention to:
- The conditions of this new situation and its consequences
- Getting the best advice and support
- The approach to better wealth structuring
Leyla Weibel-Hakim and Aurélie Rougemont Tolis answer clients’ and financial advisors’ most frequently asked questions (FAQ).
What’s changed and how does it affect wealth structuring today?
Over the past 10 years, there has been a radical change in governmental and public perception of any type of organisation that enables individual or corporate tax savings. Consequently, new national and international regulations have emerged that alter the tax implications of structuring.
Thus, the risk of proceedings being triggered by state tax or legal authorities has become a possibility for which one should be prepared as a shareholder or representative of any entity.
How do I know if my/my client’s wealth structuring is in tune with this new world?
Any type of private or corporate wealth structuring is now subject to scrutiny and analysis by tax authorities, as well as by banks, advisors, or financial and banking product service providers.
Where is private data stored and who has access to it?
The automatic exchange of tax information between states and various whistleblower revelations has enabled an unprecedented spread of information. Furthermore, computer databases allow large amounts of data to be managed in a way that was previously not technically possible.
How does one go about getting the best advice?
Be advised and guided by both a financial advisor and a wealth planner.
Although it is hard to explain the radical regulatory and fiscal changes and the potential consequences to one’s clients, it also presents an opportunity for the advisor or financial intermediary to open a direct discussion and establish a relationship of trust with the client.
Advisors should suggest that the wealth structuring be subjected to a “stress test” by an independent specialist qualified in these specific issues. We encourage you to perform this exercise, which will contribute to controlling the adverse consequences of inadequate structuring and to gain quantifiable financial benefits by putting the right structure in place.
What is the main objective of this approach?
The aim of this review is to ensure that these structures are more technical in terms of compliance with applicable law and more useful in terms of the objectives defined by the regulations.
What is the secondary objective?
An assessment of the current total costs of structuring and their competitiveness is important in order to effectively invest in the technical quality of structuring rather than in maintaining the status quo.
Leyla Weibel-Hakim
Managing Director of PC&M
Aurélie Rougemont Tolis, LL. M Tax
Consultant at PC&M, Attorney-at-law
Find out more about our Wealth Planning & Structuring service.
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