Tax, trust and succession advice to cross-border family

Case study 1

I act for an UHNW client and have recently created a Family Investment Company (FIC) for the client in which he and his children are shareholders. After a particularly acrimonious divorce, this FIC has been a reconciliatory way to show his children (and ex-wife) that he is committed to still being a “family” and also a clever way to involve his children in estate planning. The growth in the FIC will belong to the children and outside of his estate for inheritance tax purposes but funds are starting to pass to the next generation in a timely fashion. The children are hugely appreciative and attend annual board meetings along with the client. The client is set to enter politics at a very high level and will be under direct public scrutiny. We have considered how the planning looks from every possible angle and factored this into the type of company we incorporated ensuring confidentiality is paramount. It has been immensely satisfying to coordinate a team to handle all corporate and administrative aspects, working alongside other lawyers. The client, a long-standing relationship, is pleased with the formation of the FIC and our continued professional support at this sensitive family time.

Case study 2

I work with a prominent international family with significant UK trust interests invested through an open-ended investment company (OEIC) and in UK and foreign property.

I am acting for three generations of the family on all aspects of private client advice covering extensive succession planning, trust administration and UK tax advice for the family members, trustees and beneficiaries, to include coordinating all foreign legal and tax advice for the family members who are resident outside the UK (Switzerland, Austria and Monaco and there are also Dutch issues).

We recently established a new LLP to hold the large family estate in the UK run as a profitable business in order to preserve inheritance tax reliefs. We also created a new development company to carry out additional work to the estate to add significant value to the family‘s portfolio and arranged three competitive commercial loans for the LLP and trustees in order to refinance the existing structure and provide further working capital to invest in the estate.

We have acted for the family for circa 20 years and the relationship is not limited to just one generation but I am involved with the existing three generations of the family with a significant level of assets under management.