Holding companies can offer tax advantages and legal protections
Let’s say you’ve done well. You own a couple of businesses, some homes, a priceless work of art or two, a few automobiles and, why not, a yacht. You’ve done quite well, actually. And now you’re considering a private jet. Nothing fancy, just a little something to allow you to avoid the hassle of commercial aviation forever.
Along with these material possessions you’ve accumulated comes something else: worries. Worries about frivolous lawsuits by gold diggers and other opportunists. Worries about transferring these assets to your heirs without being annihilated by estate taxes.
To top it off, you’re a very private person and don’t appreciate the added attention and scrutiny your assets generate.
We can form one legal entity to own all of the corporate shares of your other legal entities
Fortunately, CS&P has a number of solutions that will allow you to rest easy, enjoy your assets, minimize taxes and maximize what you pass along to the next generation.
First off, each of your assets should be its own legal entity – and that entity can be incorporated in a tax-friendly offshore tax haven, even if the asset remains located in your home country where you can enjoy it. Separate legal entities means each asset is shielded from the others in the event of a lawsuit or other unfortunate occurrence. In addition, control of the legal entity can be passed to your heirs with no estate tax penalty – maximizing the wealth provided to the next generation.
To simplify management of these various legal entities CS&P can create for you the same structure – a holding company – used by the most successful corporations around the world. The holding company will own all the shares of the other legal entities and provide all the aforementioned benefits of ownership by offshore legal entities while also simplifying management.
Explore CS&P holding company strategies
Problem: Albert owns a lot of assets. He has several real estate holdings in raw land, a few homes for personal use, and rental properties. Albert also owns several vehicles, a boat, and a private airplane. His art collection is vast including famous artist paintings and sculptures. His wife owns a lot of jewelry. Albert worries about what will happen to all of his assets if he were to become incapacitated or when his time comes to pass away. He is also a very private person and would like to shelter his family from gold diggers, scammers, and others seeking to take advantage of someone with wealth.
Solution: We can help Albert to transfer ownership of all of his assets into legal entities while protecting his family’s privacy by doing this in a country with strong banking secrecy laws and anonymous ownership of its legal entities.
Since it is bad policy to have one legal entity owning all of Albert’s assets, we can set up several legal entities to handle separate assets.
In order to control and manage all of these legal entities, we can form one legal entity to own all of the corporate shares of the other legal entities. This legal entity will act as a Holding Company for all of Albert’s assets.
Another benefit of using a Holding Company is that when Albert passes away his estate can avoid a costly and time consuming probate process while paying no inheritance taxes. His heirs will take immediate control of the Holding Company to maintain the system for managing all of the assets. This system will be perpetual in that the heirs can maintain control of all of Albert’s assets for generations to come.
We can Create a Holding Company as an umbrella over a Client’s assets for privacy & estate planning purposes.