Multi-jurisdictional Planning | Prestovia Trust

[5-min read] Cross Border Estates: What Happens to Your Global Assets After Death?

Prestovia Trust — Tue, 23 May 2023 09:54:45 +0000

Cross Border Estates: What Happens to Your Global Assets After Death?

When it comes to managing our finances, it’s essential to consider the potential implications of our assets after we pass away. For those who hold assets around the world, the implications can be even more complex. This is where cross-border estates come into play, and it’s crucial to understand what they are and what they mean.

In this blog post, we’ll delve into the topic of cross-border estates and how they can impact your assets after your death.

What are cross-border estates?

A cross-border estate is one where the deceased has assets located in different countries. It could be a bank account, real estate property, shares, or any other asset that has value. These estates are becoming more common as people are increasingly investing and owning assets across the globe.

The complexity of cross-border estates arises due to the differences in legal systems and tax laws across different countries. For instance, if you have a property in the UK and another in the US, your beneficiaries may have to go through two separate legal processes to inherit these assets.

What happens to your cross-border estate after you die?

When you pass away, your estate goes through a legal process called probate. This process is different for every country, and it can be complicated when you have assets in different jurisdictions.

The probate process involves validating your will, identifying your assets, and distributing them to your beneficiaries. If you have assets in multiple countries, your estate may need to go through probate in each of those countries. This can be time-consuming and expensive, and it’s essential to plan ahead to avoid complications.

Why is Planning Important?

Cross-border estates can be particularly challenging because of the differing laws and regulations in each country. For example, inheritance laws can vary greatly from one country to another. Without proper planning, your loved ones could face a number of difficulties in trying to navigate the complexities of cross-border estates.

One key aspect of planning for a cross-border estate is understanding the concept of domicile. Domicile refers to the country in which a person is considered to have their permanent home. It is important to establish your domicile for estate planning purposes, as this will determine which country’s laws apply to your estate.

Another important aspect of planning for a cross-border estate is understanding the concept of forced heirship. Some countries have laws in place that require a certain portion of a person’s estate to be distributed to their heirs, regardless of what is stated in their will. This can be a particularly important consideration for those with assets in countries with forced heirship laws.

How can you plan for your cross-border estate?

Planning ahead can save your beneficiaries time, money, and stress. Here are some steps to consider:

Create a will: Your will should clearly state your wishes regarding your assets and who you want to inherit them.
Seek legal advice: You should consult with an experienced estate planning attorney who can help you understand the legal and tax implications of your cross-border assets.
Consider setting up a trust: A trust can help you avoid the probate process and ensure that your assets are distributed according to your wishes.
Keep your documents up to date: Make sure your beneficiaries know where to find your will and other important documents, such as deeds, titles, and account statements.

Estate Planning Strategies:

There are a number of estate planning strategies that can be used to help mitigate the challenges of cross-border estates. One important strategy is to work with a team of attorneys, accountants, and financial advisors who can help you navigate the complex legal and tax implications of cross-border estates.

Another strategy is to create a comprehensive estate plan that takes into account the differing laws and regulations of each country in which you hold assets. This may include establishing trusts or other legal structures that can help to protect your assets and ensure that they are distributed according to your wishes.

It is also important to review and update your estate plan regularly to ensure that it remains up-to-date and reflects any changes in your personal circumstances or in the laws and regulations of the countries in which you hold assets.

Conclusion

In conclusion, cross-border estates can present a number of challenges for those who hold assets in multiple countries. However, with proper planning and the assistance of a team of experienced advisors, it is possible to navigate these challenges and ensure that your assets are distributed according to your wishes. At Prestovia Trust, we are committed to helping our clients plan for their cross-border estates and achieve peace of mind knowing that their assets are protected.

[3-min read] What is Multi-Asset Investing?

Prestovia Trust — Wed, 30 Nov 2022 10:07:01 +0000

Multi-Asset Investing

While the goal for any astute investor is to leverage their hard-earned income into wealth-building opportunities, another aspect many take for granted is “simply” protecting that earned income.

Historically, as we have experienced before (more recently over the past few years), particular market conditions can wipe out years and sometimes even decades of gains accumulated by our investments.

In 2020, hundreds of millions globally saw their portfolio values decline dramatically due to the “black swan event” (an unforeseen, unexpected event with significant economic and financial effects). It was common to see investors report 50%+ losses in that occurrence.

So does this mean that we should all avoid the markets altogether?

We don’t believe so because, in our opinion, investing is the true form of “working smart, not hard.”

However, to us, maintaining a balanced portfolio through multi-asset investing could possibly be the solution.

What is Multi-Asset Investing?

Multi-asset investing simply means diversifying your capital across various asset classes. An asset class is a sector or industry to which an investment relates.

For instance, stocks in specific companies are one asset class, while real estate is an asset class by itself, and precious metals such as gold and silver are grouped in their own as well.

There are many more asset classes like farmland, bonds, cash, and in some instances, insurance policies. All of these classes, other than stocks, are known as “alternative investments.”

They gained the name “alternative investments” because stocks are considered the primary investment, and anything secondary to them is an alternative.

Why is it so Popular?

Multi-asset investing has become popular over time, thanks to many reasons.

For one, it allows investors to venture into other opportunities that may fit their personality, likes, or personal interests more than just stocks.

Different asset classes also offer their own unique benefits. For example, there are specific tax deduction benefits one can take advantage of by investing in commercial real estate that is not provided in other asset classes.

The same applies to certain life insurance policies where the owner can treat it as their own personal bank and take out loans against it. In this instance, the policy’s owner is both the provider and borrower of the loan.

Finally, and what may be the primary reason investors flock to multi-asset investing is the balance it provides.

Shelter From the Storm

While no asset class is free from volatility (especially during black swan events), there are some asset classes, however, that are not affected during such times as bad as others are.

Precious metals, for example, have always been considered to be a “hedge” against high inflation, which usually occurs during times of economic turmoil. Hedge meaning protecting or moving against.

In scenarios when inflation is running rampant, it’s common to see stocks underperforming while gold and silver are beating the market (outperforming the stock market in gains.)

Commercial real estate is also an asset class that tends to perform well regardless of economic conditions but can be exceptionally comforting during market downturns due to its passive yet consistent income distribution, which generally occurs monthly.

In short, if you are strategically diversified, then when one asset class underperforms, in theory, the others should help stabilize your portfolio.

Challenges

The concept of Multi-asset investing sounds promising, and indeed it is; unfortunately, not many can capitalize on the full benefits of this strategy as it takes time, experience, and expertise across various sectors, which, unless you are a dedicated professional, is not feasible for most.

In our opinion, balance is excellent, but it can be hard to achieve for most – but not to worry, because that’s why we’re here.

Get in touch with Prestovia Trust to discuss if this would be a good opportunity for us to help you diversify your portfolio.