Setting up a company for inheritance purposes
A high-net-worth-individual with a diverse investment portfolio — whether it consists of stocks, bonds, works of art, property, cash, or a range of other investment products — would be well suited to the set-up of an offshore company, particularly if said individual was planning on leaving any of these assets to his or her children, spouse or other family members.
Offshore companies are frequently used for inheritance planning and to significantly reduce the legal costs and time related to dealing with probate. If an offshore company is used to hold real estate, for instance, upon the death of the beneficial owner of the company (assuming the beneficial owner was also shareholder of the company), the company would be transferred to the new owner/shareholder as stipulated by the deceased’s will.
Additionally, a trust or foundation — for example, in Panama — can be set up in conjunction with the offshore company in order to hold the shares of said company, which can allow for additional tax advantages in the beneficial owner’s country of residence. Plus, this method also simplifies procedures and reduces costs associated with inheritance laws in the event of the client’s death.
For a UK citizen who is not domiciled in the UK, for example, an offshore company would be ideal for holding their international properties and assets. In the UK, non-domiciliaries are not subject to inheritance tax on the value of their property if held overseas, thus a clear advantage for the heirs of the estate.
Furthermore, offshore companies offer heightened confidentiality, as many offshore jurisdictions do not have publicly available records of company ownership. Plus, offshore companies can be formed with a nominee director and/or shareholder, who can act on behalf of the beneficial owner, thus the owner’s name does not appear in the company’s corporate documents, which translates to even more privacy.
Once the offshore company is formed, an international bank account can be opened in the name of the company, and on this account can be added the other shareholders of the company, should they be the heirs and should that be the wish of the predecessor. This simplifies the taking control of the bank account once the predecessor has passed and the shares of the company have been transferred.
SFM works across 15 different jurisdictions and we offer businesses the possibility of forming an offshore incorporation in as rapidly as 24 hours, followed by the opening of an international bank account within a matter of days.
From start to finish, SFM can handle all company formation and bank account opening processes for you. We offer a one-stop-shop for all your corporate and bank account opening service requirements. To start the process today, complete an online order form at the following link: ORDER NOW
Legal Disclaimer : Nothing on this page shall be construed as either a tax or a legal advice. Please obtain any necessary prior advice from a tax or legal specialist in your country of residence/operation to ensure that services acquired through SFM are used in accordance with the applicable legislation.