ABLV Bank, AS
23 Elizabetes Street
Riga, LV-1010, Latvia 		Tel: +371 6777 5222
Fax: +371 6777 5200
Client line: +371 6777 5555
E-mail: info@ablv.com

www.ablv.com
ABLV
Services / Advisory /

Asset Protection

Wellbeing of your family greatly depends on protection of your capital against your business risks.

Asset protection is a complex solution primarily intended for securing family wealth against business and political risks associated with business of the family head. This kind of protection can be ensured by using special structures (trusts, foundations) and proper transfer of your assets to those structures. Sometimes, endowment life insurance can be used for asset protection as well.

Advantages of trusts and private foundations

  • Protection of settlor’s assets
    The property placed in trust or foundation is no longer deemed belonging to you, and thus it is protected against creditors or other claims, demands and risks.
  • Protection against beneficiary’s risks
    Since assets are not regarded as belonging to the beneficiary, the beneficiary’s creditors are unable to demand their claims to beneficiary to be satisfied using the property placed into trust.
  • Estate planning
    One of the most important objectives of establishing a trust or a foundation is to accumulate family wealth over a long period and to shield it from possible risks of the family members, alongside ensuring estate planning. Thus, the head of the family can ensure that after his or her death all instructions will be followed, taking into account particular needs of all family members.
  • Single control
    Establishing a trust or a foundation, the head of the family can make sure that after his or her death control over core assets (real estate, business, intellectual property) will not be split among various minor beneficiaries, and decisions made with regard to these assets will be efficient and professional.
  • Exemption from taxation
    Usually, assets held in trusts or foundations are not subject to taxation at the place of registration. This ensures great opportunity to accumulate and use capital without negative tax implications.
  • Representation in court
    Since the trust or foundation manager has to manage assets for the benefit of the beneficiaries, the manager has rights to protect the assets, also by bringing a case to the court against persons committing illegal actions in respect of the trust property.

Besides providing advice on asset protection, preparing respective legal or tax opinion, registering desired structure in one of the licensed jurisdictions, we are also ready to ensure communication with managers and offer you payment administration services. We also recommend you to consider the opportunity of receiving Latvian residence permit, which allows you to freely travel across the European Union.

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  • Trusts

    Trust is popular instrument used for planning family wealth, and it forms an efficient secure structure, which is protected against risks of the trustor and beneficiaries (such as creditors’ claims, divorce proceedings, etc.).

  • Private Foundations

    Private foundation is a trust equivalent used in civil law countries (i.e. most European countries). The concept of a private foundation emerged in Lichtenstein more than hundred years ago, and thus an instrument for protecting and planning family wealth appeared.

  • Endowment Life Insurance

    Endowment life insurance policies provide a convenient instrument for protecting personal and family assets and structuring their ownership. This allows transferring liquid assets to an insurance company in exchange for an insurance policy having equal value. Beneficiaries that should receive payments upon occurrence of an insured event are stated in the policy.

  • Investment Funds

    Efficient centralized management of wealthy family assets can be ensured by using investment fund. These are investments meeting high responsibility standards.

  • Proper creation of a trust

    A successful businessman turned to us for proper formalization of asset ownership, including assets held by offshore companies for the customer's benefit.

    • The client is married, and he has minor children. Together with the client we identified his main goals, which were subsequently consolidated into a trust agreement:

      • to protect the assets from the business risk of the entrepreneur;
      • to ensure that the assets will be used according to the procedure agreed during life and in case of death of the entrepreneur;
      • in case of the family head death, to provide the secondary and higher education of his children in high-status schools and pay an allowance to the family members until the children reach the age of 25.

      The tasks were solved by registration of the trust with licensed managers and the appointment of our subsidiary company as its protector.

    Igors Šlivko

    Head of Private Baninkg Department North

  • Igors Šlivko