The fact that artists generally give very little consideration to proper estate planning can affect the value and the marketability of a single piece of art or an entire art collection thought their own lives
Hong Kong has been experiencing a boom of family offices, further incentivised by tax breaks or residency options. It is indeed a very efficient Wealth Planning tool for HNWI.
Transitioning ownership and control to the next generation is only one of the hurdles for many family business owners in succession planning
Valuation of artworks is the first step that an investor should think about as it has deep consequences in wealth and estate planning, as well as in case of future divorce proceedings.
Common issues for art law include how works of art should be valued, how to protect and acquire ownership of Intellectual Property Rights in art, free speech issues, authenticating and dealing with stolen artworks, cross-border transfer and a variety of business issues related to the art industry.
If you would like to carry on your family business for successive generations and you feel that the retention of such shares is of utmost importance and that you do not want a third-party trustee to interfere with the management of the business, then a PTC or a VISTA Trust may be the solution for you.
The major hurdle is finding the right trustee since there is no standard answer as the wishes of the settlor, family circumstances and asset picture or holding structure can all affect the choice of trustee.
There are different types of trusts for different purposes depending on the settlor’s needs and goals, while the essential characteristic of all trusts is the separation of legal and beneficial ownership.
In the modern days when even chivalry has been pronounced dead by many, trusts remain relevant, especially for those who wish to protect family wealth and plan for succession.
Anyone making a Will should carefully consider how to choose the executor, and whether to put in additional clauses governing the powers and duties of the executor in the Will.