Overview
Our client, a successful entrepreneur from Italy, had lived in Dubai for over 7 years. During this time he had acquired 4 Dubai properties and amassed over $1.5m in savings and investments; he also owned a number of businesses in the UAE.
Position
Married, with two daughters, he explained to us that he had put a will in place to protect his family in the event of his demise, but was aware that this may not be enough to protect his family from forced heirship and the devastating impact of a half-planned situation.
Our client was concerned that should anything happen to him, his estate may be immediately frozen, perhaps for as long as one year, including his bank accounts and business interests. His family may have been subject to severe hardship, whilst the lengthy legal proceedings led to an interpretation of his estate planning, with no guarantee of the outcome he had hoped for in the event of his untimely demise.
Solution
We helped him to establish a Foundation in the Dubai International Finance Centre (DIFC). He could sit as a Council Member of the Foundation, alongside other council members of his choosing, including, our qualified experts appointed to support effective governance. As the Founder, he was able nominate his beneficiaries and, in the event that the worst should happen, there would then be a seamless transition of his estate and wealth to his family without interruption. If he wanted, he could have his wife sit on the Council, or other family members or trusted advisors of his choosing.
DIFC is a common law jurisdiction, with a world class legal system, with huge benefits for those who use Foundations as a wealth planning vehicle as there is a high degree of legal certainty. By utilising a DIFC Foundation, he could ensure that his family would immediately benefit from the estate according to his wishes during his lifetime.
In addition to his Foundation, we concurrently established a number companies to hold his business interests. We did this in order to protect him and his family should there be a detrimental event at any of his businesses. For example, he would be protected from litigious individuals and the potential for any attack on his wider wealth.
Outcome
The use of Foundations, and appropriate company structures, is increasingly used as individuals look to facilitate succession planning, protect their accumulated wealth, and ensure that their family benefits from their hard work and success. The structure that we designed for our client allowed him to retain a significant degree of control, whilst protecting his assets and ensuring effective succession planning as per his wishes.
For more information on the use of Foundations and Companies to protect your wealth and ensure effective succession planning, visit out insight series and visit our website www.cavenwellgroup.com
