Family Office Department

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SLP - Family Trust

Family Offices may use this flexible vehicle to structure the holding of their wealth by bringing all or part of their assets into such SLP.

 

The main reasons why a SLP as Family Trust can be usefull:

  • Good Alternative  to a trust or a foundation

  • Replacement to a will or a testament

  • asset protection,

  • confidentiality,

  • flexibility,

  • investment in participation, financial instruments, PE, hedge fund

  • real estate ownership 

  • efficient tax planning strategies

  • and can hold assets such as boats, planes, villa, artworks collections, cars, etc..

 

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More details

Limited Partneship Agreement

The LPA can provide with the following :

  • the duration of the SLP (unlimited or a limited period of time) and the way the assets should be distributed in such case

  • the method of reimbursement of partnership interests and the conditions to be met

  • the entitlement of partners to the profits (and losses) of the SLPdistributions to the partners, conditions, which may depends on the type of shares

  • voting rights (which are usually given to the first generation)

  • the transfer of partnership interests (restriction or other conditions)

Specific provision for a Slp as a Family Trust

  • The LPA can provide for the appointment of an investment committee.

  • The succession can also be planned by providing rules whereby the first category of shares receive all the voting rights and right to distribution.

  • These rights are only granted to the next category of shares when the holders of first category of shares have disappeared.

  • The management can be conducted by a specific committee and its right is limited or subject to a veto right of a category of shares or one particular person.

  • The LPA can provide for the issuance of share giving right to only one assets (tracking shares) or one category of assets or a portion of the capital of the capital of the SLP, excluding the other assets.

Tax transparency for the SLP

From a direct tax standpoint, the primary measure of the AIFMd law is the full tax transparency of the SLP for Corporate Income Tax (“CIT”), Municipal Business Tax (“MBT”) and Net Wealth Tax (“NWT”) purposes. This means that no taxation will be applicable to the profit realised by the SLP (assuming that the GP does not hold more than 5% of the capital of the SLP).

In addition, the distribution of dividends by a SLP is not subject to withholding tax.


 

 

 

 

 

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