January 15, 2020

New Year’s Resolutions: Long-Term Wealth Preservation Tips for Russian HNWIs

http://boltenkolaw.com/wp-content/uploads/2020/01/long-term-wealth-preservation-tips-russian-hnmwis.jpg

At the beginning of the new year and after a good break, one tends to think about the big picture, strategic long-term goals and solutions to problems. In this e-shot we share our tips on how you and your loved ones can enjoy and preserve wealth for the long term.

We will also discuss this subject at the VI Annual Russian Wealth Advisor Forum on January 29 and 30, 2020 in Zurich. You can find more information about the forum and register here.

  • Tip 1: If you do not have a will, write one. If you have one, check that it is still valid and that it covers all of your assets.
    Without a will, in Russia the fruits of your labour probably will be equally divided between a spouse, children and dependent parents. A will can change that. If you have a will, but you spend time in other countries, or have real estate abroad, or have a citizenship of another country, your old will might not cover all your assets and may not be valid in part or in whole.
  • Tip 2: If you have young/immature children, make sure that the wealth they will inherit is a joy, not a burden.
    Do you want prevent your inexperienced children from becoming a target for people who want their money? Do you want to enable your children to achieve their own goals in life? Family trusts, wills, and appointment of economic guardians can help achieve this.
  • Tip 3. Sign a post-nuptial agreement with your spouse.
    If you are married for a while, probably half of your wealth is beneficially owned by your spouse. If you think that this is not fair, this division can be changed by entering into a post-nuptial agreement.
  • Tip 4. If you cannot fully trust in your government, business partners or spouse, set up a family trust.
    A family trust will help you and your family to protect your assets from hostile parties, whilst allowing your family to enjoy the wealth. When you set up the trust, make sure a system of checks and balances is in place which allows the family to be in control, without directly controlling the trustees. The choice of trustees is one of the most important decisions you will make about the new structure.
  • Tip 5. Preserve your legacy.
    There is so much more one can do with your wealth than just passing it on to the children. Dynasty trusts can ensure that wealth is preserved and enjoyed through generations. Charitable trusts can help to continue giving to the causes you care for.
  • Tip 6. Arrange for a medical proxy.
    What happens if you are incommunicado or unconscious at the hospital? Who is going to make vital decisions when you are unavailable? Medical proxy or a power of attorney given to a trusted friend, family member or a professional can be a solution.
  • Tip 7. Find a place to keep your core documents safe.
    Do you have a safe place to keep your ownership documents? Do your loved ones know how to find them? Make sure that you create a system of checks and balances, which will allow your heirs to find what documents you have, so they can step into ownership of assets without many years of searching.
  • Tip 8. Perform a health check of your structures.
    If your ownership documents or structures were done some time ago, please check if they are still legally sound and continue to serve your goals well.

What’s next?

Boltenko Law can help. We will be happy to advise you on what options you have to mitigate your problems and to propose available solutions.

We remind you that these topics will be further discussed at the VI Annual Russian Wealth Advisor Forum on January 29 and 30, 2020 in Zurich. You can find more information about the forum here.

We take the first introductory call or meeting on no commitment basis; further work will be done on the agreed contractual terms. We are based in Zurich, and regularly travel to Moscow, London, Geneva and Cyprus, and can meet you or your clients there.

Please contact Olga Boltenko (olga.boltenko@boltenkolaw.com and +41 79 900 2526) or Evgenia Martin (evgenia.martin@boltenkolaw.com and +41 79 126 3195) for further advice.