tariq aboobaker reshma chopde - amicorp group...tariq aboobaker reshma chopde webinar by amicorp...
TRANSCRIPT
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Tariq Aboobaker Reshma Chopde
Webinar by Amicorp Group
WITH THE EXPERTS
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Topics we will address
Why succession planning is so important and the consequences when it is not taken care of
We will talk about some of the options to plan for your succession
How these tools work both for a family or a business
Our expertise and how we can work with you to achieve what you are looking for
ESTATE & SUCCESSION PLANNINGFOR INDIAN NATIONALS
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SUCCESSION PLANNING
Estate planning is the process of anticipating and arranging for the disposal of your estate during and after your lifetime.
An Estate Plan includes:
Estate management;
Estate preservation; and
Estate legacy
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SUCCESSION PLAN?
Business Houses, Entrepreneurs & Professionals;
Nuclear family or Joint family;
Family with no legal heir or with a special child;
Family with beneficiaries across globe with different residential status;
NRI family with assets in India;
Multiple marriages;
Inheritance tax planning;
Protection from any unforeseen events;
Any person who would like to distribute his assets as per his and not as per the governed law.
“In other words, every person needs a succession plan”
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SUCCESSION PLANNING
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SUCCESSION PLANNINGAvoid disputes within or outside the family;
Asset protection – against claims/litigation from within or outside the family;
Asset protection during divorce & separation;
Smooth distribution of wealth as per one’s wishes;
Safeguard interests of the dependents;
Efficient and uninterrupted management;
Preservation of assets & Succession planning;
Demarcation of personal & business income;
Inheritance Tax planning;
Planning for Old age/Medical emergencies or Maintenance of a Special Child;
Philanthropic aspirations.
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SUCCESSION PLAN
If one dies intestate, which means without making a Will, Assets will be distributed according to religion based personal law applicable to one, which can be a lengthy
process with undesired results
Christians, Parsis, Jews
Indian Succession Act Hindu Succession Act
Muslim
Sharia Law
Hindu, Jain, Sikh Buddhist
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Amicorp
How do I prepare myself for succession planning?
Can I still retain ownership of wealth after the succession?
Can I make a provision to receive periodical income
after succession?
SUCCESSION PLANNING
Where doI start ?
How can I create a strong circle of trust
between various stakeholders?
How can I ensure that future conflicts within the
family are avoided?
How may I effectively plan succession of
business?
Do my family members share the same vision as
I do?
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SUCCESSION
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TOOLS FOR SUCCESSION
Trust Combination of any of them
Will / Gift
Text
MODES
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A WILL?
Will is a Legal document that comes in play on the demise of the testator
It carries the wishes of an individual regarding his / her estate /assets
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WRITE A WILL?
Components of a valid Will
He/she must have attained the age of majority (21 years)
The person making a Will should be of a sound mind
Attestation by two witnesses
Each witness should sign the Will in the presence of the Testator
The Will should be signed by the Testator/Testatrix
The Will should be in writing
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TRUST?
PRIVATE TRUST
A Trust is a relationship whereby property
Is transferred by one party (Settlor)
To be held by another party (Trustee)
For the benefit of a third party (Beneficiaries)
Governed by the Indian Trusts Act, 1882
PUBLIC TRUST
When a trust is formed for the benefit of the public or any section of the public, religiousor charitable purpose includes a temple, any other religious or charitable endowment
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TRUST
Real Estate, Bank Acc., Art etc.
Investment Portfolio
Business , Inherited
Assets
Wife Children Parents Charity Settlor
Settlor
Protector
Trustees,Administrator / Managing Trustee
Trust Assets
Advisory Board
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TRUST CAN HOLD
Bank Account & Investments
Portfolio
Art & Jewelry
Holding Companies
Business/Inherited Assets
Real Estate
Beneficiaries
Family Trust
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TRUST STRUCTURE
Protector
Trustees
Beneficiaries
Trust Assets
Specifies the terms of trust, trustees, beneficiaries, Protector and conveys legal title to trustees
Supervises the operations of the trust upon the demise of the Settlor and keeps a vigil on the trustees
Trustees hold legal title to trust assets.
Distributions
Family Trust
Investment Advisory Board
Provides guidance in terms of investments, divestments….
Settlor
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Family Trust
The Settlor contributes assets to the trust and
receives benefits during his lifetime
REVOCABLE TRUST
The Settlor contributes assets to the trust and the
family members are the beneficiaries to the trust
Family TrustIRREVOCABLE TRUST
TRUST
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PROVISIONS
Revocable TrustAll income arising to any person by virtue of a revocable transfer of assets shall be chargeable to income-tax as the income of the transferor. Therefore, will be taxed as per individual slab rate.
Transfer to the TrustAssets settled into an irrevocable trust shall not give rise to any income-tax implications in the hands of the settlor.Distribution to the BeneficiariesReceipt of property by the Beneficiaries shall not lead to any tax implications
TaxationIrrevocable TrustIncome of irrevocable trust is taxed in the hands of the Trust at Maximum Marginal Rate, in case of a discretionary trust or taxed in the hands of the Beneficiaries at their individual slab rate, in case of a determinate trust.
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FAMILY VERSUS BUSINESS
Family
Driven by emotions
Bound by love and affection
Selection based on seniority
Resisting change
Business
Driven by task
Bound by profit and growth
Selection based on meritocracy
Exploiting change
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FAMILY VS BUSINESS
The head of the family is reluctant to step down
Different working style of the Next Gen
Capability and Competency
Aspirations and Interests of the Next Gen
Outside Talent
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CIRCLE MODEL
Tagiuri & Davis 1982
1. Family Members
2. Family Shareholders
3. Shareholders
4. Employee Shareholders
5. Employees
6. Family working in the business
7. Family shareholders working in the business
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FAMILY AND BUSINESS
Remember: Managerial ability is more important than birthright.
Develop policies that will help your successors to manage expectations, performance and relationships more effectively.
Identify spoken and unspoken rules.
Deal with emotional issues before emotion becomes the issue.
Bu
llet
Da
sh
Su
b-b
ulle
tBusiness
Ownership
&
Continuity
Exit
Strategy
Dispute
Resolution
Weath
Preservati
on
Family
&
Business
Family
Vision
Estate
Planning
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THROUGH A PRIVATE TRUST
Different Trusts for Business Assets and Private Wealth
PFT 1
FamilyMembers
Beneficiaries
Business Assets
PFT 2
Family Members
Beneficiaries
Personal Wealth
Settlor Settlor
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WHAT WE CAN DO FOR YOU
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SERVICES INCLUDE
Areas to be considered by private family groups
Personal and business vision, goals and attributes
Personal goals ?
Vision for future of family ?
Roles and responsibilities
Formalize and agree roles and responsibilities for family members ?
Should spouse be allowed to work ?
Family strategy
Are the family members able to work together?
Family remuneration
How should it be determined ?
Board and exist strategy
How should the board operate going forward ?
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PLANNING SERVICESWill
Drafting & registration of Will
Trust
Drafting of Trust Deed & registration of Trust
Management of Trust as Trustee/Managing Trustee
Family Business Consulting
Articulating the Family Constitution
Building the Business Governance Model
Next Generation Education
Business Restructuring
Arbitration between family members
Executorship Services
Identifying assets of the Testator
Obtaining Letter of Administration/Probate fromthe Court
Recovering dues & paying debt, duties and expenses
Distributing the assets to the beneficiaries
Coordinating the preparation of tax returns
Filing final statement with the Court
Document Preservation / Custodial Services /Escrow Agent
Safe custody of property documents mentioned in a Will or held under a Trust
Acting as an Escrow Agent and a Custodian
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AMICORP AS TRUSTEES
Property management;
Overseeing and managing all functions related to the trust;
Transferring movable (i.e. shares) and immovable assets (i.e. real estate) to the Trust;
Pay rent or collect rent on behalf of the Trust;
Assistance in filing of tax return on behalf of the Trust;
Audit for the Trust;
Conducting board/shareholders meetings where the Trust holds shares in a company;
Safe Custody of the Trust Deeds and other related documents;
Distribution of the assets to the beneficiaries as mentioned in the Trust Deed;
Appointment of Investment Advisory Board;
Signing on all investment related documents;
Signing on all Trust related documents;
Applying for Pan Card for the Trust;
Assistance in opening of Bank/Demat and Trading Accounts;
Family welfare and maintenance.
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LOCATIONS
TRUST LAWS OFFERED
BarbadosBVI **Bahamas * ***CaymanIndiaNew ZealandMauritiusSingaporeUK * ***USA – South Dakota **
SERVICES PROVIDED FROM
Cayman *Barbados ** Switzerland ***
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AMICORP GROUP
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AMICORPKnown as a leading global service provider, Amicorp Group offers multi-level and business critical solutions to global corporates, international advisory groups, financial institutions, investment firms and family offices. We provide personalized service, and we tailor our offerings to the needs of our clients.
700+ 30+ 10,000+ 40+
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An independent growing global provider of company secretarial and fiduciary services.
Serving corporate but also high-net-worth clients.
Hong Kong based group, establishedin 1992.
Global networked team.
ISO 9001, ISO 27001, SAS 70 type II & ISAE 3402 type II, Six Sigma.
Licensed & regulated corporate, trust and fund provider.
We focus on UBO's in LatAm, Middle East, Africa and Asia.
Strict compliance policies, compliant solutions.
Secure systems with backups in Geneva.
WE ARE
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OFFICES
OFFICES
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“IT’S NOT WHAT YOU TAKE WHEN YOU
LEAVE THIS WORLD BEHIND YOU. IT’S WHAT
YOU LEAVE BEHIND YOU WHEN YOU GO”
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OUR EXPERTS
+91 98705 [email protected]
Tariq Aboobaker
+91-22-2431 1621/1522 [email protected]
Reshma Chopde
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THANK YOU