The twentieth century has provided unlimited opportunities for wealth creation, both in the developed world and the emerging markets like PRC. Unfortunately over the past two decades there has been a progressive escalation of risk factors adversely affecting the creation and retention of wealth. To expect the unexpected' is the key to a successful modern day financial planning structure.
Risks to preservation of wealth.
Financial disaster may arise from a wide variety of risk factors. Punitive inheritance tax regimes, extravagant family members, mismanagement of business enterprises, political changes resulting in expropriation of assets, or the imposition of currency controls are the risk factors that have traditionally influenced wealth protection strategies.
Risks to preservation of wealth.
Financial disaster may arise from a wide variety of risk factors. Punitive inheritance tax regimes, extravagant family members, mismanagement of business enterprises, political changes resulting in expropriation of assets, or the imposition of currency controls are the risk factors that have traditionally influenced wealth protection strategies.
In an ever increasing number of countries we have seen an escalation of personal risks as a result of punitive awards by juries or overzealous courts, recognition of liability for environmental risk factors, increased liability exposure of non-executive directors as corporate laws become more protective of creditors and shareholders, and in the latter case, legislation that strips away the traditional protection of the corporate shield.
Some of the risk factors in modern world:
- Litigation particularly for professional malpractice or negligence;
- Marital breakdown or family estrangements;
- Mismanagement of investment portfolios without proper risk management diversification;
- Political risks and tax regimes;
- Various other categories of contingent creditors;
- and more…….
Unless the proper techniques of wealth protection are applied, much of that wealth will be lost in coming years through the failure of benefactors and their advisors to take the appropriate steps to protect the asset base from a variety of risks and contingencies.
Some of key factors of having an effective wealth protection strategy.
1. Choose an appropriate asset ownership structure that works for you
There are many different strategies that may be adopted to protect wealth. Some of these are straight forward, common sense risk management techniques, ranging from the simple transfer of assets into a corporation, to more complex structures involving limited partnerships, corporations and trust planning.
We adopt a creative but practical approach to our clients' financial and fiscal planning needs. The key to our approach is that we invest time to understand the individua's situations and needs before recommending and implementing any particular form of solutions.
2. The importance of forward planning.
In most jurisdictions there are laws which operate to set aside transfers of property which are made with the intent to defraud creditors, and in many instances intent to defraud is deemed to occur where transfers of property are made within a specified period of time. Therefore for wealth protection planning to be effective it is essential that asset transfers are made well ahead of any potential creditor action, properly documented and placed in a legal environment which offers the utmost protection from potential attack.
3. Selecting an appropriate jurisdiction.
As most wealth protection plans will involve the use of an international trust, it is important that the selected jurisdiction have English common law as the foundation of its legal system. Civil law jurisdictions are generally not suitable for international wealth protection trusts. There are many legislative issues that need to be considered in selecting the international trust jurisdiction that offers the best wealth protection facilities.
Who we are and how can we help?
Established as a corporate identity in 1978, Asiaciti Trust has its foundations in chartered accountancy practices which date back to 1886. Asiaciti Trust is one of the most recognised and professionally respected names in the international fiduciary services industry.
Asiaciti Trust is headquartered in Singapore and, with operations also in Hong Kong, the Cook Islands, Dubai, Nevis, New Zealand, Panama, Samoa, and Uruguay, is now one of the leading Asian Pacific based international trust groups. Each office in the Asiaciti Trust Group is headed by professional accountants or lawyers supported by chartered secretaries and other qualified professional managers.
The international product range offered by Asiaciti Trust is not limited to international companies and foreign trusts. Other structures provided include many onshore arrangements, partnerships, pension or superannuation funds, and offshore life assurance.
Asiaciti Trust offers a specialised service in wealth protection planning using various type of planning structure based in international finance centres. We assist professionals and their clients to develop appropriate asset protection strategies to preserve wealth. When it is necessary to consider domestic legal issues we work with specialist outside legal counsel.
Christine Wong
Managing Director
Asiaciti Trust Hong Kong Limited
Website: www.asiacititrust.com
Asiaciti Trust Hong Kong Limited Room 1707
17/F Harcourt House 39 Gloucester Road Wanchai,
Hong Kong
Tel: (852) 2591 9009
Fax: (852) 2891 2436
Email: Christine.Wong@asiacititrust.com / hongkong@asiacititrust.com
