Family Office. Expertise

We ensure meeting all compliance requirements applicable to our customers (e.g., within the tax or currency legislation). For this purpose:

• We understand what obligations (filing reports and notices, paying taxes) and restrictions apply to our customers (based on their tax and currency residency, citizenship, personal situation).
• We prepare a compliance calendar with deadlines for each commitment and the necessary preparatory steps.
• We track the fulfillment of the compliance calendar (including preparation of all necessary reports, notifications, declarations).
• We check all customer’s transactions for compliance with applicable restrictions (e.g., when crediting certain payments to a foreign account).

We apply a similar approach to the personal structures of our customers (trusts, private foundations, personal investment and holding companies).

We also provide legal and tax support for one-time projects such as:

• Moving to another jurisdiction and changing tax residency.
• Creation of personal structures (including investment and personal foundations).
• Preparation of shareholder agreements and other similar documents.

One of our customers’ goals is to get the second generation of the family into the family business and provide succession. Based on our practice, this goal can only be achieved through a systematic approach, by creating family councils and developing rules for family participation in business.

We believe that to engage the second generation in the business, it is appropriate:

• Interview family members and determine their common views and disagreements about the family business.
• Discuss and record the regulations of family councils (place, time, agenda, procedure).
• Further, hold regular family councils according to the regulations.

We help our customers moderate family councils and engage all participants in discussing and practicing the decisions made at the family council. Topics for family councils can be:

• Familiarizing family members with the structure of the business and key employees.
• Defining each family member’s role in the business and their area of responsibility.
• Developing a motivation system for family members and discussing their KPIs.
• Agreeing on the rules of succession of the family business (who gets a share in the family business and when).

It is important to us that customers’ structures remain efficient and in line with current trends. Based on this, we audit such structures from the perspective of:

• Management efficiency – we avoid excessively complex structures, seek to simplify them and eliminate unnecessary elements.
• System of checks and balances – the structure should provide for mechanisms in case of hostile actions (e.g., elements of different levels should not be managed by the same director, documents should provide for a clear procedure for changing directors/administrators, etc.).
• Structure costs – remuneration of directors, administrators, auditors of the structure should be market-determined, hourly rates should be eliminated.
• Reputational risks – elements established in blacklisted jurisdictions should be excluded / redomiciled.

After analyzing the structure, we make a list of our recommendations and implement thereof.

We help our customers develop and implement the succession mechanisms taking into account their personal situation. We implement such projects as follows:

• Together with the customer, we complete a questionnaire that allows us to formulate the customer’s wishes for the succession and determine the composition of assets. While completing the questionnaire, we consider the approaches to succession as practiced by wealthy families.
• Hereafter we determine the most appropriate succession instruments that will allow the customer to realize their wishes (will, personal foundation, trust). When selecting an instrument, we take into account the requirements that apply in the jurisdiction of the assets and are applicable to the customer (e.g., forced heirs).
• We develop all necessary legal documents to implement the succession mechanism (will, trust declaration, rules of personal foundation) and coordinate signing thereof. If the assets are located in different countries, we also take steps to facilitate the receipt of the assets by the heirs (for example, signing a duplicate will in the jurisdiction of the assets).
• We will prepare simple directions for the heirs so that the heirs understand what is required to receive the inheritance.

We have practical experience in closing transactions for the sale and purchase of assets of our customers. In particular, we have supported transactions involving (i) residential real estate in the UK, Montenegro, Czech Republic, Cyprus, (ii) commercial real estate in Portugal, Germany, Spain, Montenegro, UAE, Cyprus, (iii) yachts and private jets, (iv) holding companies in Cyprus, Singapore.

As part of such projects, we:

• Create a due diligence data room and collect documents regarding the asset (in case of sale).
• Organize legal and technical (if necessary) revision of the asset (in case of purchase)
• Agree the terms and structure of the transaction, prepare a transaction term sheet.
• Develop the drafts of legal documents.
• Prepare an agenda for closing the transaction indicating all technical steps, deadlines, and responsible persons.
• Coordinate transfer of ownership of the asset.