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Help Tackle Law in Wealth Structuring & Funds Management

Wealth structuring legally protects assets through the principle of separation. By irrevocably transferring assets to a separate legal entity, such as a trust or foundation, you are no longer their legal owner. Consequently, those assets are generally shielded from the claims of your future personal creditors or from lawsuits filed against you personally. For the protection to be effective, the structure must be established correctly and for a legitimate purpose, well in advance of any foreseeable claims.

Structuring assets for international families requires a bespoke cross-border framework that harmonizes the tax and inheritance laws of multiple nations. The strategy often involves using a trust or foundation in one jurisdiction to own holding companies that in turn own the specific assets in various other countries. This creates a centralized, compliant, and tax-efficient structure that facilitates the management and transfer of global wealth across generations.

Investment funds are legally structured as formal entities, like limited partnerships, to pool capital from various investors. To protect these investors, funds are supervised by a national securities regulator, such as the Securities and Exchange Commission (SEC). This oversight governs how funds raise capital, the required disclosures on strategies and risks, and their ongoing reporting obligations for transparency to ensure investor protection.

The primary legal duties of a fund manager are fiduciary in nature, demanding the highest standard of care and trust. This includes the duty of care, which requires the manager to act with the skill and diligence of a prudent professional when making investment decisions. It also includes the paramount duty of loyalty, which obligates the manager to act solely in the best financial interests of the investors, placing their interests above their own and strictly avoiding any conflicts of interest or self-dealing.

Choosing a jurisdiction for a trust or foundation is a critical decision based on several key factors. Lawyers evaluate the sophistication and stability of the country’s legal system and its specific trust laws. The jurisdiction’s tax treatment of the entity is also paramount. Other vital considerations include the level of financial privacy afforded by its laws, its long-term political and economic stability, and its international reputation for regulatory compliance.