Wealth Structuring

Protecting, managing, structuring and enhancing the wealth of Family Offices and High Net Worth Individuals.
Wealth can be structured and managed upon four pillars. These pillars can be complementary or utilised in isolation:

1. Tax Structuring, Inheritance Planning and Administration

Family offices wishing to manage and control participation, while also protecting, maintaining and administering assets or possessions around the globe, need to effectively structure their wealth. Incorporating companies, holding entities, establishing trusts and foundations, dedicated structured products, or setting up funds (such as specialised investment funds or equivalent structures/funds established abroad) could be just some of the solutions.

2. Concierge & Redomiciliation

Another solution could be to transfer residence, to redomicile in a country where they may elect nationality, domicile or residence.
Individuals should begin by considering the various advantages that one country may offer, taking into consideration the impact on the family office’s assets, income, administration, passport, taxation and protection.

Then, once the decision to transfer residence or domicile to Luxembourg (or to another country) is made, the family office’s representative may face some questions or difficulties that our Concierge and Redomiciliation services would take care of, such as:

• administration requirements during a move to the Grand Duchy Luxembourg
• selection of external services experts such as estate agents, bankers, insurance brokers, etc.
• selection of a home/s and handling of interior design and decoration requirements to these properties
• registration on arrival and the processes for the family and pets
• registration in the consulate or embassy
• drivers licences, vehicle registration and the process for vehicle re-registration in Luxembourg
• security and technology aspects such as alarms, computer surveillance systems etc.
• personal secretary services
• various services for children such as enrolment at nurseries, daycare and schools, as well as the employment of baby-sitters, child care etc.

3. Economic Advice, Financial Instrument Engineering, Selection of Portfolio Managers and Supervisory Role

Choosing the most suitable financial instruments, structures, and managers while taking into account the different assets, regular income requirements and taxation issues of HNWIs is not an easy matter. The family office will need to receive expert fiscal advice, which consists of understanding the global investment objectives and working to increase the yield on the portfolio.

4. Wealth Consolidation and Dedicated Reporting

In today’s economic climate family offices and individuals may meet several difficulties in the administration of the assets they very often hold. For instance:

• holding several types of asset (quoted or non-quoted, private equities, real estate, non generating income possessions, artworks, etc);
• indifferent forms (holding directly, in trust, via investment funds, in nominee through their bankers, in common ownership with other family members or third parties);
• indifferent countries (their country of residence but also in many others where they have former interest, where they were born, or where their bankers have sub-custody, etc).

This complicates the family office administration and prevents full transparency regarding the valuation of assets, incomes, risks, correct follow up concerning external administrators, transfer agents, and fair reporting for legal or tax authorities. Adequate reporting, which can assess the total assets managed, the evolution of wealth, global return, costs/fees paid to the various counterparties, and related risks linked to the portfolio, should be the solution.

The 6 Step Process to Wealth Structuring: