Private wealth management

Question 1

What levels of taxation must be taken into account in estate planning?

Answer 1

1) On income
2) On spending
3) On wealth
4) On transferred assets

Question 2

What tax benefits a community property regime provides?

Answer 2

Opportunity to defer estate taxes on at least half of communal property until the surviving spouse’s death

Question 3

What are tax benefits of investing in private companies?

Answer 3

Opportunity to calculate taxes after applying valuation discounts

Question 4

Ways to resolve the residence-source conflicts in the double taxation treaties

Answer 4

1) Exemption - no taxation by the country of residence
2) Credit method - taxes paid in the source country are used as tax credit for taxation in the country of residence
3) Deduction method - taxes paid in the source country reduce the taxable income in the country of residence

Question 5

Tell main issues in the give now vs bequest

Answer 5

1) Gifting taxation decreases benefits of gifting
2) If gifting taxes are paid by the giver they create certain tax credit for the estate tax
3) Gifting to charity creates tax deduction for the whole amount of FV(bequest)
4) Skipping a generation is usually a good idea as it allows to avoid double taxation