What are the legitimate reasons for Muslims to use offshore, trusts and private trust companies to plan their succession?

Tim CartwrightHead of Dubai Office

www.hawksford.com

Tuesday, 24 November 2015

Gary WattsPartner & Regional Head of Corporate Commercialwww.tamimi.com

Overview• The dangers of transition

without succession planning

• Asset protection purposes

• Tax optimisation purposes

• Generation skipping

• Confidentiality

• Case studies: Trusts in the DIFC for local families

Trusts in the DIFC for locals• Why they are created

• What they look like

• Are they successful?

The Patriarch or Matriarch• Sole ownership of

many local and international assets

• Next generation becoming far more international in outlook

• Bridging the gap

International assetsWhat problems lie ahead if no planning is put in place?

• Family disharmony• Business or asset

management disruption• Asset dilution • Divorce• Foreign tax exposure

How to approach the creation of an offshore structure

Protocols:

• What a high net worth individual may worry about in this area

• Barriers for the next generation

The legitimate reasons for doing so

• Forced heirship concerns

• Generation skipping

• Confidentiality

Where and why?

• Offshore locations

• Are some better than others?

• Firewall legislation

• Flight to quality

What other areas should be under consideration?

• Tax optimisation

• FATCA

• CRS

What can structuring look like?Guardian Foundation ‘PTC’ Purpose Trust Enforce

r

Investment Committee(s) / Adviser(s)

Family Businesses

Shariah Board

PTC Limited

Trust 5Trust 2 Trust 3 Trust 4Trust 1

100% shareholding

Funding

OR

AdministrationAgreement

Board Members

What can structuring look like?

SPF

LuxCo

Non-portfolioinvestments

SPV SPV

Portfolioinvestments

Other investments

not qualifying for PEs under

LuxCo

Jersey CoCayman Co

Trusts are shareholders in SPF

Trusts

US LLC

US real estate

SPV SPV SPV

Is there a future in holding assets offshore?

• Yes

• And why?

Thank you for joining usTo find out more about Hawksford’s services for corporate and private clients, please contact me.

Tim Cartwright TEP Hawksford GroupDirector

T: +44 1534 740115M: +44 7797 810353Dubai office: +971 4 420 3375E: tim.cartwright@hawksford.com