Centrolaw

The Swiss wealth management industry is one of the world's largest cross-border ecosystems offering a wide range of solutions, including trusts. As a result, wealth owners often ask which criteria they should select their trustee. Marc Blumenfeld, the founder, and managing director of Swiss compliance, regulatory, and legal services provider, shares his thoughts on Switzerland's regulatory framework for trusts and why you should aim for a long-term relationship with your trustee based on a structured selection approach. Trustees should provide regular accounts and reports to the beneficiaries or the protector to ensure ongoing control. Furthermore, robust governance enables them to act timely and, if needed, replace the trustee before any damage is inflicted. Check our blog: https://www.centrolaw.ch/en/insights/detail/centro-law-guest-series-swiss-trustees-a-regulatory-perspective

  Wealth is vulnerable in many ways, and some of the most significant threats are lawsuits, divorces, and creditors. Asset protection is an arrangement to safeguard wealth from future claims and creditors' access. Your specific economic and legal environment will shape the rule set for asset protection. Starting early with asset protection and conducting an ongoing wealth planning analysis with regular reviews enables a solid asset protection plan that keeps family wealth safe in turbulent times. Engaging your family in the process will ensure awareness and alignment to protect wealth for the long haul. Your circumstances and wealth may change over time, and thus, being prepared for risk events is crucial. Check our blog: https://www.centrolaw.ch/en/insights/detail/asset-protection-to-safeguard-wealth

  Wealth management and asset management are occasionally interchangeable terms around the same topic: growing and preserving wealth. But don't be misled into thinking they're the same thing as their execution is different in different contexts. There are no unified definitions across the industry to reduce complexity. The lines between asset management and wealth management are blurred. A wealth planning strategy is the baseline for the implementation of wealth management services. Each service component should be best-in-class, cost-efficient, and cost-effective. Technology can bring the best of specialized wealth and asset management providers together for individualized results. Check our blog here: https://www.centrolaw.ch/en/insights/detail/wealth-management-vs-asset-management-main-differences

  The financial industry has come under pressure as more and more greenwashing cases have become public. There are increasing concerns that ESG investments do not live up to their promises. Christoph Klein, the founder of a multiple-award-winning ESG portfolio management firm, discusses the threats of greenwashing and how wealth owners can navigate the product landscape for positive impact aligned with their values. Where to start? Take a look at the CFA Institute's new ESG disclosure standards, which can provide valuable guidance or the Principles for Responsible Investment (PRI) that offer a menu of possible actions for incorporating ESG issues into investment practice. Check our blog here: https://www.centrolaw.ch/en/insights/detail/meaning-of-esg

  Wealth structuring is more than holding assets with trusts, foundations, companies, partnerships, and life insurance policies. Wealth structuring provides diversification, tax efficiency, wealth protection and preservation, and consolidation of business activities. Ultimately it contributes to all these aspects in comprehensive and individualized solutions. Contact us to schedule a free consultation to learn more about leveraging private wealth structures. Blog original source: https://www.centrolaw.ch/en/services/wealth-structuring

Wealth and asset protection don't enjoy the best reputation in the public's eyes. There are two ways to achieve asset protection. First, wealth owners can dispose of their wealth or encumber its ownership to no longer relevant for third parties' enforcement claims. Modern legal and economic environments acknowledge the vulnerability of wealth and allow for protection measures and risk mitigation. Wealth owners need to give up control over their assets to protect their legitimate interests from creditors' attempts to enforce their claims.  Blog original source:  https://www.centrolaw.ch/en/insights/detail/how-to-achieve-legitimate-asset-protection

  Inheritance tax in Switzerland occurs at the last residence or abode of the deceased person. Only two cantons levy inheritance taxes on the overall estate without considering the relationship between spouses, children, and other relatives. The Swiss Constitution prohibits double taxation between cantons, so they must follow allocation rules. Inheritance tax planning is business as usual in Switzerland. Due to gift and inheritance tax exemptions or reduced tax rates, family wealth can be preserved over generations. In addition, the country's liberal legal and tax environment enables predictable and effective wealth planning strategies, including estate planning. Blog original source: https://www.centrolaw.ch/en/insights/detail/inheritance-tax-in-switzerland

  Various instruments help design an individualized family wealth plan rather than a conglomeration of courses of action following legal definitions. Thus, the human component for everybody involved merits equivalent acknowledgment. The whole interaction is about you and your family's future and should give everybody inner serenity. This can be awkward, uncover weakness, and you might even experience strain. In any case, it's a vigorous interaction towards solidarity, association, mutual perspective, and inspiration. You will need a game plan, expert assistance, vehicles, and instruments to adhere to your strategic plan. Your objectives are essential, but you will also have to consider the risk exposure of your wealth plan and think in scenarios. Check our blog on:  https://www.centrolaw.ch/en/insights/detail/wealth-planning-human-centric-design-and-risk-management