Estate planning is the collection of preparation tasks that serve to manage an individual’s asset base in the event of their incapacitation or death, including the bequest of assets to heirs and the settlement of estate taxes. In other words, it is the process of legally structuring the future disposition of current and projected assets to ensure your assets are transferred to your beloved one, pay the least amount of taxes on your estate and assign guardians to your minors. Hence, the role of the legal advisor is to make it possible for the affluent client to achieve a desired agenda and be tax efficient at the same time.
Some of the major estate planning tasks our firm can help its clients with includes:
– Creating a will
– Limiting estate taxes by setting up trust accounts in the name of beneficiaries
– Establishing a guardian for living dependents
– Naming an executor of the estate to oversee the terms of the will
– Creating/updating beneficiaries on plans such as life insurance
– Establishing annual gifting to reduce the taxable estate
– Setting up durable power of attorney (POA) to direct other assets and investments
Sometimes planning structures can be complicated; foreign grantor trusts, private placement life insurance, dynasty trusts and numerous types of leveraged gifting are not simple, but they work from both an income and transfer tax perspective and allow the client to achieve his or her personal goals.
It is important to remember that the goal is to transfer wealth in accordance with a person’s wishes. Estate planning is an on-going process and should be started as soon as one has any measurable asset base. As life progresses and goals shift, the estate plan should move to be in line with new goals. Lack of adequate estate planning can cause undue financial burdens to loved ones (estate taxes can run high), so at the very least a will should be set up even if the taxable estate is not large.
Our expert solicitors will:
• Seek for the most tax efficient outcome of your particular circumstances.
• advise you on a variety of high net worth clients as to the most tax efficient way of disposing of or retaining your property or assets in Cyprus
• analyse your circumstances and provide you with a clear, concise and practical advice as to the best ways of minimizing the potential impact of inheritance tax, capital gains tax and income tax
By taking the time to learn about and understand each client’s finances in depth, we are able to provide services that are uniquely tailored to his or her specific needs and priorities. We apply our knowledge of the ever-changing tax laws thoughtfully and with the emphasis on practicality.