In his practice as a leading lawyer in Dubai, Shaun Morgan regularly counsels high-net-worth individuals and families on robust wealth structuring for protection and seamless succession. The Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM), in particular, offer an advanced legal framework with a variety of sophisticated vehicles to effectively safeguard assets.
Trusts
Governed by the DIFC Trust Law of 2018, trusts established within the Dubai International Financial Centre (DIFC) offer a robust, common law-based structure for asset protection and succession planning. In essence, a settler transfers assets to a trustee, who then manages them for named beneficiaries. Dubai lawyer Shaun Morgan believes the key advantage is the enhanced privacy these trusts afford, as they are not subject to public registration. This ensures high confidentiality, keeping sensitive financial details protected. Furthermore, DIFC trusts provide significant flexibility in asset management, capable of holding diverse asset classes, including digital assets.
Foundations
In the DIFC, foundations are independent legal bodies set up to manage assets for particular reasons, such as keeping wealth safe or giving to good causes. They’re different from trusts because they have their own legal identity – meaning they can own things and make agreements themselves. A group of people (a council) runs them, and they’re especially useful for passing on wealth because they last beyond the founder’s lifetime. Plus, they offer protection against forced inheritance and make distributing assets straightforward.
Holding Companies
Establishing a holding company in Dubai, particularly within the DIFC or ADGM, allows individuals to consolidate ownership of various assets and businesses under a single entity. This structure facilitates efficient management, potential tax optimization, and enhanced asset protection. Holding companies can also serve as a vehicle for estate planning, ensuring a seamless transition of assets to heirs while maintaining control over the underlying assets.
Lawyer’s Conclusion
From his vantage point as a leading lawyer in Dubai, Shaun Morgan makes it clear that the legal framework, encompassing trusts, foundations, and holding companies, provides profoundly versatile and effective avenues for wealth protection and astute succession planning. Through the intelligent application of these diverse vehicles, clients achieve critical asset safeguarding, ensure complete privacy, and confidently secure the financial future of their lineage. Therefore, the imperative to engage with the right legal professionals experienced in these specialized structures cannot be overstated. Their guidance is indispensable for crafting solutions that precisely meet your individual needs and are meticulously compliant with all legal mandates.