Wealth Protection Plan set-up


 

HNWIs owns assets and businesses all over the world, such as participations in Private Equity, portofio of securities, co-investments with other investors, shares in projects, real estates, etc.

They want to protect their nearest and dearest and  be sure that all of their assets will be transfered to them if something happens.  But, very often, no structures, retirement plan or inheritance programme to ensure that their businesses and incomes continues to the next generation are set-up.

 

In that case, a Luxembourg Private Foundation can be the solution to respect these wishes. This new entity gives the opportunity to a settlor (resident or not) to receive assets and appoint a board of directors which will be responsible to administer the Foundation. Beneficiairies can also be appointed by the settlor.

Finally the settlor appoints Creatrust as a protector whose role is to be sure that all the settlor's wills and the procedure of transfer to the next generation will be strictly followed.

 

Creatrust can use the Wealth Protection Plan, a package that we have set up to help HNWIs to structure their succession. This package has four steps:

 

The first step consists in the establishment and the analysis of the list of assets to be transfered to the Foundation. The objective is to be able to advise the HNWis on the more adequate structures to hold and manage such assets.

At the same time, the election of the board of directors takes place and Creatrust is appointed Protector of the private foundation.

 

The second step determines the list of beneficiaries and how HNWIs would like that their assets are managed, maintained, transfered and/or donated. Conditions on how this will be done are also defined.

 

The third step precises a Plan to be activated at the death of the Settlor, in which procedures take in account if the loss happens due to a sudden incident,  the place where the assets are situated and the persons to contact.

 

The Fourth step is the set-up of luxembourg private foundation itself with a notary.

The Regulation is signed by the Settlor and mentions the appointment of the beneficiaries.

The structure is then effective. The Protector can now start to monitor the activities of the board of directors and  activate the Plan and the procedures defined by the Settlor, who still keeps control of the way assets are managed by the Foundation.

Finally, the Settlor has the possibility to be nominated Director of the Foundation or to modify the list of the directors and their powers,  or the list of beneficiaries.

 

 

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