When it comes to structuring your wealth, there is no one-size-fits-all solution. The choice of structure depends on your objectives, the nature of your assets, and the jurisdictions involved.

Below are some proven and tested options:

1. Trusts

Trusts are one of the most versatile tools for succession planning.

By transferring assets to a trust, you can ensure that they are managed according to your wishes, even after your lifetime. Trusts offer several benefits, including:

• Asset Protection: Safeguarding wealth from creditors or legal disputes.
• Tax Efficiency: Reducing estate and inheritance taxes.
• Privacy: Keeping the details of your wealth and beneficiaries confidential.

In Mauritius, for instance, the Trusts Act 2001 provides a robust legal framework for both domestic and international trusts, making it an attractive jurisdiction for an increasing number of HNWIs.

2. Foundations

Foundations are increasingly popular among families seeking a hybrid structure that combines the benefits of a trust and a company.

A foundation is a separate legal entity that can hold assets, manage wealth, and distribute income according to predefined rules. Key advantages include:

• Perpetuity: Foundations can exist indefinitely, ensuring long-term wealth preservation.
• Control: Founders can retain a degree of control over the foundation’s operations.
• Philanthropy: Foundations are ideal for families looking to incorporate charitable giving into their succession plans.

Dubai’s foundation laws, particularly within the DIFC, offer a modern and flexible framework for establishing private foundations.

3. DIFC Wills

For expatriates in the UAE, a DIFC will is a powerful tool to ensure that your assets are distributed according to your wishes. The DIFC Wills and Probate Registry provides a common-law framework that is particularly beneficial for non-Muslims. Key features include:

• Clarity: A DIFC will clearly outlines how your assets should be distributed, reducing the risk of disputes.
• Efficiency: The probate process in the DIFC is streamlined, ensuring a faster distribution of assets.
• Flexibility: You can specify guardianship for minor children and include assets located outside the UAE.

4. Family Offices

For ultra-high-net-worth families, a family office can be an invaluable tool for managing wealth and ensuring a smooth transition across generations. A family office is a private organization that handles the financial and administrative affairs of a wealthy family. Benefits include:

• Comprehensive Wealth Management: From investment management to tax planning, a family office provides end-to-end solutions tailored to the family’s needs.
• Succession Planning: Family offices can help design and implement strategies to transfer wealth and leadership roles to the next generation.
• Family Governance: They facilitate the creation of family constitutions and governance frameworks to promote harmony and shared values among family members.

Family offices can be structured as single-family offices (SFOs) or multi-family offices (MFOs), depending on the family’s size and requirements. Jurisdictions like Dubai and Mauritius offer favorable environments for establishing family offices, thanks to their robust regulatory frameworks and tax-efficient regimes.