Succession law revolution in Monaco
In July, Monaco unveiled a revision of its succession laws which until this year had been the subject of dissent. The reason was that Monaco, is a civil law country, and, under civil law, descendants had certain rights that international families often didn’t want to follow. The update means that now, a person writing a will can elect that succession follows the laws of their nationality.
Revolution in the law
William Easun, founder of the law firm Tempest Legal Services in Monaco, describes the change as “a revolution in legal terms‚. He adds: “I have seen a huge number of people wishing to rewrite their wills to reflect the change. Its significance is not to be underestimated for people who move here: it was one of the negatives of Monaco residency for people from common law countries.
Opt out of reserved rights proves attractive
The law also determines the matrimonial law that will be applied in the event of an international divorce. But in terms of succession, it is the ability for those from common law countries to opt out of the reserved rights accorded to children by civil law that is so attractive, particularly to families from places like Britain, Australia and New Zealand.
British eye Monaco as a new home with Brexit
The UK political changes may prove particularly fruitful for Monaco. A recent report published by the accounting firm Moore Stephens found that tax changes and Brexit mean that a large number of British non-doms they surveyed are considering leaving the UK for good. Those planning on leaving ranked Monaco as the third most attractive destination, behind Switzerland and the USA.
The change to the succession laws is just the latest example of Monaco’s authorities making efforts to attract more HNWIs to the jurisdiction. Another initiative saw changes to the regulatory framework to allow formal set up of multi-family offices in a bid to encourage more of Monaco’s foreign residents to deposit assets in the principality.
Family offices move to Monaco
“Increasingly people are interested in having their family offices in Monaco, says Xavier de Sarrau, a partner at Gordon S Blair Law Offices. “It is an area where there is a lot of work. Maybe as a result of the Common Reporting Standard, more and more people in the private client world are realising there must be real substance to where they claim residence, and it’s not enough just to spend time in Monaco, you must carry out your activities here and demonstrate that.
Residency permits and formal certificates of residency are not equal
He says the authorities have also recognised the need to distinguish between residency permits, which are temporary and afford a right to stay, and more formal certificates of residency. These are only handed out after an investigation: “The Monaco authorities now take that very seriously, says de Sarrau. “They don’t want to give out the certificates to just anybody, and only give it now if you demonstrate that you bring business or the management of your assets to Monaco.
Vistra opens in Monaco
Such an approach is good news for the principality’s wealth management industry, which is maturing to cope with a more sophisticated regulatory backdrop. Vistra, the global fiduciary services firm, opened in Monaco in February, where it will set up and manage trusts, companies and private fund structures for high net worth families.
Monaco to double its number of inhabitants with reclamation of the sea
Walter Stresemann, Founder & Managing Director, Magnolia Private Office S.A., says: “In the face of ever-more demanding family governance and estate planning situations, it’s important to have different firms locally.” He adds: “Monaco is planning to almost double its number of inhabitants by reclaiming part of the sea, and work has already started on this.”
