international wealth protection: an introduction

international wealth protection an introduction

About us Howard Kennedy offers an exceptional series of legal services and solutions for the wealthy discerning client. From our offices at No.1 London Bridge, and in conjunction with our global legal networks, the Firm provides a highly personalised service to meet life’s small (and larger) challenges, while seeking always to ensure that the legal structure of our clients’ asset bases is protected, both now and for the future generations.

We understand “Family Office” issues. We work closely with leading service providers in finance, investment, property management, accounting, taxation and a range of other related service sectors.

Through our wide and long-established client and intermediary network, we are happy to introduce our clients to alternative sources of funding, other like-minded partners and investment opportunities.

Clients choose to work with us because:

What we do to protect your wealth

• w e value their business, many comment that they feel like a ‘number one’ client

• Tax and international succession planning

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our partners are involved in the detail as well as the big picture – our partners stay involved seeing transactions through to completion and do not simply turn up for the pitch

• Family law advice • S ale and purchase of high value real estate and luxury assets

• o ur team of specialist lawyers has a breadth and depth of experience across the spectrum of industry

• Immigration and nationality issues

• w e have an entrepreneurial and forwardthinkingapproach

• Structuring charitable giving and philanthropy

• we provide commercial solutions, not just legal opinions • w e offer integrated advice on complex issues and projects

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• Estate administration and disputes

• S trategies for protecting inward UK investment

How we can help Tax and international succession planning Proper management of tax affairs is critical to wealthy individuals and any businesses they may own. We put time and effort into working with our clients on legitimate tax planning and mitigation strategies. We specialise in the creation of tax efficient Wills and trust structures to protect a client’s wealth and to ensure it transfers to future generations, whilst co-ordinatiting international planning for clients with foreign interests.

Clients with foreign domicile and/or residence can take advantage of their status and benefit from tax planning opportunities using offshore trusts and other vehicles. We regularly advise on the benefits of such structures for the purpose of succession planning, confidentiality and UK tax mitigation.

Estate administration and disputes As well as advising clients on lifetime issues, we take away the stresses and uncertainties that can arise when administering estates upon death. Where appropriate we advise on how to mitigate inheritance tax post death, including the use of deeds of variation.

We proactively co-ordinate the worldwide administration of estates where there is an international dimension.

Where inheritance disputes arise, our specialists achieve effective, timely and economical resolutions.

changes as a result of recent cases so that, provided certain safeguards are met, the English Courts will now follow them unless there is something seriously unfair about the terms of the agreement. For international couples, we co-ordinate the English advice in all relevant jurisdictions and analyse the enforceability of agreements beyond the UK.

Sale and purchase of high value real estate and luxury assets, including art Where clients are considering the sale and purchase of high end real estate, yachts or private aircraft, we help with negotiating building contracts, sale agreements and financing documentation and also provide any VAT or other tax advice.

We advise on commissioning, purchasing and selling art and are well versed in coordinating transactions that involve several jurisdictions. We liaise with brokers, insurers, charterers, auctioneers, galleries and other interested parties to facilitate production of the documentation and information to satisfy registries, lenders and auction houses.

Immigration and nationality issues For non-UK individuals considering living or working in the UK, we can demonstrate the most effective routes to enter and live in the UK. We advise on both the immigration rules (to secure your personal status and minimise travel disruption) and the most tax effective means to secure your wealth prior to residency in the UK.

Family law advice Our dedicated team of family law specialists can advise you about protecting your wealth when marriage or relationships threaten to break down. Also before marriage and in calmer times during a marriage, Pre-Nuptial and Post-Nuptial Agreements enable clients to protect assets and future inheritances.

Whilst such agreements are not binding under English law, there have been dramatic

“We find them easy to work with as they can present information in a sensible and pragmatic way.”

Chambers & Partners Clients’ Guide to the Legal Profession 2015

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Investing in the UK Strategies for protecting inward UK investment

Structuring charitable giving and philanthropy

If clients are setting up business in the UK, or buying (or buying into) an existing UK business, we can assist with the following issues:

We can recommend to clients tailored structures to maximise the tax efficiency of personal charitable giving. We are able to assist in structuring charitable institutions and foundations and work closely with banks and accountancy firms who specialise in the financial aspects of such entities.

• personal and business tax planning • employee tax planning and immigration • optimal business or corporate structures together with wider considerations such as premises rentals and purchases, IT licensing, distributing arrangements, intellectual property issues and corporate governance.

Other services for individuals include: • Wills and Inheritance Tax planning • efficient administration of estates

We specialise in business reconstruction where businesses face commercial or financial difficulties (or to investors in distressed enterprises).

• c reation and administration of trusts and charities

We assist wealthy international families with the formation of a family office with a view to coordinating investment programmes in the UK and overseas, relationships with joint venture partners etc. Where appropriate our role helps minimise contact with UK regulations.

• m arriage and cohabitation (pre-nups/ postnups/cohabitation agreements)

• trust and estate dispute resolution • family issues, including:

• r elationship breakdown (divorce/civil partnerships dissolution and financial settlement) • o ur specialist children’s unit dealing with residence and contact, adoption and surrogacy, international child abduction and children disputes • residential property • employment law advice • reputation management and defamation • crime • personal injury

“Very good particularly on response times and value for money.”

Legal 500 Guide to Law Firms in the UK 2014

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Case Studies US tax issues and advice

Inward investment into the UK

We advised an American national CEO of a British company, providing tax and succession advice to dovetail with US advice for estate planning purposes. The advice was specifically designed to take advantage of the US estate and gift tax planning regime. We also worked with him on the creation of an offshore trust structure.

This year we have helped numerous non-UK residents who wanted to acquire and own valuable residential property in Central London.

Our advice included structuring the ownership arrangements tax efficiently, taking into account inheritance taxes and the new annual tax on enveloped dwellings (ATED).

Luxury Assets Last year we acted for a Middle Eastern seller of a Gulfstream aircraft to an Indian buyer.

Our role included: preparing a Letter of Intent; preparing and negotiating the Aircraft Sale and Purchase Agreement; liaising with the operator of the aircraft and with the purchaser’s representatives to arrange a pre-purchase inspection at a Gulfstream facility in Switzerland; subsequently arranging for delivery of the aircraft in Jersey including dealing with Jersey Customs; dealing with the bank financing of the aircraft; co-ordinating the closing which involved the exercise of an option by our clients to purchase the aircraft from the financing bank and the immediate sale on to the ultimate purchaser and the deregistration of the aircraft.

Art Collection We recently advised a high net worth client and leading collector of contemporary art based in the UK on the creation of a foundation dedicated to promoting and commissioning land art. The foundation will hold artworks by leading contemporary artists situated in the English landscape and will lease land and commercial premises in order to make these artworks available to the public.

One particular client, who owned UK residential real estate valued at more than £20m, needed us to help unwind an existing corporate structure to return the property to their personal ownership.

This advice included an assessment of the implications of that personal ownership and the UK tax consequences of terminating an existing trust structure. English succession law was relevant, and we prepared English Wills to secure inheritance for future generations of the family.

Cross-jurisdiction family proceedings We advised a divorcing husband on where the jurisdiction of their breakup would be heard.

The couple had married in Switzerland, where they entered into a Pre-Marital Agreement, which said that the marital relationship and any conflicts were governed by Swiss law. Neither of them were British nationals, although they did live in England until the husband returned to Switzerland to initiate divorce proceedings. The wife wanted to divorce in England and contested the Swiss jurisdiction. As Switzerland is party to the Hague Service Convention, the husband’s Application to the Swiss Court took priority over the wife’s, having been served first. We helped the husband win the priority of Proceedings in the Court of Appeal.

Our work involved advising our client on the charitable structure of the foundation, on tax relief as well as advising on commissioning agreements with the artists involved.

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Meet the team

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Liz Palmer Partner: Head of private client T: +44 (0)20 3755 5645 E: liz.palmer@howardkennedy.com

Alan Kaufman Consultant: Family T: +44 (0)20 3755 5538 E: alan.kaufman@howardkennedy.com

Neil Long Partner: Private Client T: +44 (0)20 3755 5578 E: neil.long@howardkennedy.com

Brian Slater Consultant: Tax T: +44 (0)20 3755 5712 E: brian.slater@howardkennedy.com

Sam Hook Partner: Real Estate T: 020 3755 5512 E: sam.hook@howardkennedy.com

Anthony Hunt Partner: Head of Corporate Real Estate T: +44 (0)20 3755 5521 E: anthony.hunt@howardkennedy.com

Michael Chapelow Partner: International T: +44 (0)20 3755 5399 E: michael.chapelow@howardkennedy.com

Simon Malkiel Partner: Private Client T: +44 (0)20 3755 5587 E: simon.malkiel@howardkennedy.com

Paul Amandini Partner: Aviation T: +44 (0)20 3755 5358 E: paul.amandini@howardkennedy.com

Sue Thackeray Partner: Head of Commercial Litigation T: +44 (0)20 3755 5743 E: sue.thackeray@howardkennedy.com

Mark Stephens, CBE Partner: Dispute Resolution T: +44 (0)20 3755 5735 E: mark.stephens@howardkennedy.com

Howard Goulden Partner: Employment T: +44 (0)20 3755 5477 E: howard.goulden@howardkennedy.com

The team is “efficient, professional, innovative and extremely capable of dealing with things of a complicated nature.”

Chambers & Partners Clients’ Guide to the Legal Profession 2013

No.1 London Bridge London SE1 9BG DX 144370 Southwark 4 Tel: +44 (0)20 3755 6000 Fax: +44 (0)20 3650 7000 www.howardkennedy.com