Asset protection is more important than ever in these turbulent times. A diversified portfolio across countries and asset classes is subject to various regulatory challenges and risks. Entrepreneurial investments and shareholdings must be understood in terms of liability. Reporting and KYC (Know Your Customer) obligations must be followed internationally. Tax-wise, one must ensure that reporting and filing obligations are met at the correct legal entity level. It is also important to note that the view of an investment or entity type might differ between your home country and abroad.

Even purely domestic assets need to be structured so that risky investments are separated from purely passive ones. On the tax side, assets that generate purely private investment income should not be mixed with commercial or “commercially characterized” assets so as not to lose, for example, the tax exemption for real estate sales after a 10-year holding period. We help you build structures that avoid external liability for particular assets, remain compliant (thus not burdened by fines or penalties), and manage the “CROSS BORDER COMPLIANCE” in implementation (see reference in another section). Threats aren’t just external: the family itself and a lack of professional planning on the part of the asset holder can lead to avoidable losses and outflows.

For example, marital property claims (e.g., community of accrued gains), compulsory share claims, and unnecessary double taxation due to missing or outdated wills often endanger family wealth.

We draft a set of contracts for you—standard practice for large estates and families. These ensure that everyone is brought to the table to develop fair solutions. Agreements on compulsory shares must be integrated into a family strategy. If, for example, there is a business asset that should pass only to one or a few heirs while the others are compensated with more liquid assets, which on paper may not be of equal value, a shared understanding of the bigger picture is essential.

Spouses need suitable provision without allowing a non-liquid asset to be disrupted by divorce. Clearly formulated wills are also a must-have for every asset holder. We have seen large estates decimated by heirs disputing wills that are non-existent or invalid. These are all aspects of necessary asset protection.

We also conduct intergenerational discussions with you and your asset managers about what other centrifugal forces beyond taxes and legalities might threaten the assets, questions prompted by current geopolitical developments, and whether—and why—a family should manage wealth collectively.

A wealth architecture is more than just legal and tax optimization plus sustainable succession planning. We begin by determining who accompanies your assets and family members in building, expanding, and preserving wealth: tax and legal advisors, asset managers, and family office steering consultants. Implement an asset reporting system or hire an external service provider.

Who has access to which information and which parts of the assets? Who needs insight and who needs to communicate with whom? How do you ensure that your wealth is protected from abuse? What role does cybersecurity play?

We work closely with you and your asset managers to establish a lasting asset allocation and provide the appropriate legal and tax framework.

Our team includes members with hands-on experience in large single-family office structures; they can give you valuable insights. At the same time, we know our limits. We address ownership strategy and values-based questions with our network partner Dr. Karin Ebel and her team at ebel&team ([link]). For overarching asset strategy and the development of a robust secular, strategic, and tactical asset allocation, we collaborate with your asset managers (banks, asset management firms, MFOs). If desired, we can also bring additional independent partners—such as Eta Family Office GmbH or Reportify GmbH—to the table. Together with these and other partners, we can help you select and implement digital asset reporting solutions that integrate with tax and legal requirements.

For diverse, cross-border assets, fulfilling all the national and international tax, legal, and regulatory requirements is essential to asset protection. Failure to comply with tax or regulatory obligations can result in usage bans, fines, and even criminal consequences—and in some cases, expropriation. We provide you with an overview of all domestic and (for foreign assets) foreign obligations. Domestically, we can handle all ongoing reporting and tax obligations, take care of tax returns and annual financial statements, and manage entries in the transparency register and notifications to the Bundesbank.

Where possible, we utilize automated solutions in partnership with our partner company and its TaxTec Lab services. If you or your asset-holding companies employ a wealth reporting system, we can leverage its interfaces for our tax analyses. We work with various reporting and systems providers to improve automated reporting. Our network partners abroad verify that you fulfill all obligations there in a legally sound manner. If you wish, our partners abroad can assist with local tax returns, supplemental disclosures, and corrections. Our goal is to reduce effort by structuring processes effectively and entering data only once, using digital systems wherever possible.