Guest article by Markus Miller
Foundation LIGHT: The multi-generational­ model for your capital protection
31. May | Capital protection
Foundation Light: The multigenerational­model for your capital protection
from Markus Miller
I repeatedly receive questions about the establishment of foundations in Liechtenstein in order to protect family assets across generations. In this context, I have to note that very often there is an unrealistic idea with regard to the necessary assets required for the conception and administration of a Liechtenstein family foundation. An alternative is the “Foundation Light”.
A foundation under an assessed asset of at least 2 to 3 million euros is simply inefficient for cost reasons and therefore not recommended. Insurance policies from the Principality of Liechtenstein, on the other hand, offer you advantages similar to those of a foundation (“Stiftung Light”) and are already ideally suited for professional structuring models for contract sums starting at €50,000.
What is “capital protection”?
From a holistic perspective, capital protection means the totality of all measures that protect an asset from losses. These losses can have a wide variety of causes: Liability attacks, mismanagement, losses due to adverse gifts and inheritances, unfavorable tax arrangements, divorce or death, and other negative events.
The goal here is to create a legally secure fortress by building a kind of “firewall” around your assets.
Liechtenstein is the most effective capital protection oasis in Europe!
Increasing debates on an increase in inheritance tax and the top tax rate, the reintroduction of wealth tax plans to levy a one-off wealth tax, and further expropriation fantasies for assets are acting as accelerators for such capital protection needs.
The main advantage of capital protection concepts in the Principality of Liechtenstein is the high political stability and legal security of the location. Liechtenstein is not part of the liability and redistribution community of the European Union and is free of government debt. Therefore, there is no tax pressure there to increase revenues. Nevertheless, the small state can take advantage of all the benefits of the EU through its EEA membership (EEA = European Economic Area). Citizens or market participants in general operating in Liechtenstein benefit from a liberal understanding of the state, which is designed for consensus and less for government action that tends to be dominant and focused on regulations and prohibitions as in the states of the European Union.
Such a direct-directional democracy with flat hierarchies and a lean state apparatus is, of course, far easier to implement in a small country with only 39,000 inhabitants than in the states of the EU. That is why you should gladly take advantage of these unique, equally legal, and legitimate locational advantages of the Principality of Liechtenstein, if necessary. One of the best ways to do this is with insurance policies under Liechtenstein law, through which you can also implement a multigenerational model with foundation-like benefits (= Foundation Light).
Foundation Light as a strategic capital protection concept for family assets
Only one thing is absolutely certain in life: at some point, we will die. If we know about our finiteness, why don’t we deal with the resulting consequences for our relatives and surviving dependents? Most people in Germany, about 70%, die without leaving a will. On the basis of reliable evaluations, most of the wills drawn up are invalid due to formal errors or failure to achieve the testator’s intended purpose.
The intelligent capital protection concept of the multi-generation model can be ideally implemented via insurance policies or a Light foundation from the Principality of Liechtenstein. As I have always recommended, you can combine the tax and legal advantages of the German Insurance Contract Law (VVG) with the advantages of the Liechtenstein Insurance Supervision Law (VersAG). By combining several insurance contracts, it is possible to secure and plan family assets up to the fourth generation.
Structuring and investing instead of saving is the maxim of the hour!
The state and the ECB have long since lost their protective functions for our public finances and the currency – the euro. On the contrary, current policies and financial policies entail great dangers for all citizens, taxpayers, and, above all, asset holders. The EU and euro systems have now mutated into a dangerous liability community and redistribution union.
You must be aware that as a citizen and taxpayer, you are jointly liable for undesirable developments in politics, the economy, and society. That is why I advise you to create at least one main pillar in the area of your bank accounts, securities deposits, and safe deposit boxes outside the EU. My favorite countries are Switzerland and the Principality of Liechtenstein.
Especially times of crisis always offer great changes, structuring possibilities, and investment opportunities. Use the latest now the various action alternatives for the protection of your money. For example with insurance policies or a Light Foundation from the Principality of Liechtenstein.
Together with Vienna Life AG, we offer you flexible options for insurance-based investments.
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