Wealth protection and succession
Three layers, in this order: protect, dollarize, and transfer. For Brazilian families who don't want to depend only on the real and on probate.
No structure makes your wealth invisible, and anyone who promises that creates a problem for you. But you can protect far more than most people think: separate personal and company assets, hold part of your wealth in dollars, and get your estate in order.
Part of your wealth can reach your heirs without waiting for probate, such as a life insurance death benefit paid to the named beneficiary. What applies to each asset depends on where it is and how it's structured.
A U.S. LLC and, where it makes sense, an offshore vehicle. Separation between personal and invested assets.
Dollar liquidity or real estate, held through the structure. In some cases, this step can run in parallel with setting up the structure.
Dollar IUL: contractual floor, liquidity during life, and named beneficiaries. There are solutions for U.S. residents and non-residents, subject to the rules of the country where you live.
Insurance is subject to the insurer's medical and financial underwriting. Structures abroad must be reported to the tax authorities.
An Indexed Universal Life (IUL) policy is a U.S. life insurance contract, in dollars. It is not an investment or a stock-market product. It combines a death benefit with a policy value that may accumulate according to the contract's terms.
No legal structure makes assets invisible or untouchable. What the law allows is legitimate asset protection: separating personal assets from company assets, organizing succession, and holding part of your wealth in a hard currency, always reported to the tax authorities. Structures built to hide assets from creditors or tax authorities can be set aside and create problems for whoever uses them.
Yes, as long as they are reported. Owning a company, account, or policy abroad is allowed; the obligation is to report everything to the competent tax authorities, in Brazil and in the U.S. where applicable. No structure we design is intended to hide information from tax authorities.
In part. With life insurance, the death benefit goes directly to the beneficiary named in the policy and, as a rule, stays out of probate. Assets held by a company or another structure can pass under that structure's rules. What applies to you depends on where each asset is and should be confirmed with legal advisors.
They may. Under current law, non-residents have an exemption of only US$60,000 on U.S. assets, and anything above that may be taxed at up to 40%. How those assets are held (personally, through a company, or another structure) changes the result, so it's part of planning with tax advisors.
Yes. Brazilians may hold companies, accounts, and trusts abroad, as long as everything is reported to the Brazilian tax authority and, when foreign assets exceed the Central Bank threshold, also in the Brazilian Capital Abroad report.
Usually not. Companies are generally formed remotely, with documents and identity checks. Some banks ask for a meeting, in person or by video, to open the account.
Not for Brazilian residents. Under Law 14,754/2023, profits of offshore companies in tax havens or with mainly passive income are taxed at 15% every December 31, even without distribution.
A trust is a legal arrangement, common in common-law countries, in which the settlor transfers assets to a trustee for beneficiaries. A private foundation is a legal entity of its own, available in countries such as Panama. Both serve succession, with different rules and costs.
It means the structure has a real purpose and activity, not just a paper existence. Many jurisdictions have substance rules, and Brazilian authorities also look at a structure's purpose. That is why the design starts from the family's or company's goal.
There is no fixed number. A structure has setup and annual maintenance costs that must make sense against the wealth, the goal, and the time and cost saved in succession. We run that math in the assessment.
Schedule a confidential wealth assessment to see which layers make sense for your case.