Leigh-Alexandra Basha - Family Matters On Line

Legal and tax considerations of Premarital and Postmarital agreements

By Leigh-Alexandra Basha | Family disputes and solutions, Protection of wealth and family assets, Tax Planning | 4 min read

The primary objective of a premarital agreement is to settle property rights in case of divorce or at death and maintenance in the case of divorce. Except for child support, a couple is free to enter into any type of agreement they wish. There are many important issues to consider, such as: Choice of Marital Regime: In some jurisdictions( e.g., France), the parties are free to choose their marital regime e.g., separation de biens, communaute universelle or communaute reduite aux acquets. Similarly in Germany, one can override the...

Income Tax Planning Considerations in Premarital and Post Marital Agreements

By Leigh-Alexandra Basha | Family disputes and solutions, Tax Planning | 6 min read

Legal and tax considerations of pre and postmarital agreements? The Premarital and Postmarital Agreement - consider it when tying the knot or thereafter. Marriage today is more complex than ever given the high rates of divorce, second marriages, blended families, and increasing globalization of couples. Anyone with significant property, an inheritance, a family business, or children from a prior marriage ought to consider a premarital agreement. Those entering a same sex marriage or civil union should also consider one. If the couple is...

Enforceability of Premarital and Postmarital Agreements

By Leigh-Alexandra Basha | Family disputes and solutions | 7 min read

Enforceability An important issue for the couple is whether the agreement will be enforceable. Generally, it will be upheld if it was entered into voluntarily and is not unconscionable. There are several facts the courts will look at to determine enforceability. First, both parties must sign the agreement voluntarily. It should not be signed in circumstances that may indicate duress, coercion or undue pressure. This means that the parties should not sign the agreement en route to the wedding ceremony. Ideally, the agreement should be...

Same Sex Marriages

By Leigh-Alexandra Basha | Family and matrimonial law, Living will and testaments | 6 min read

Common Law Marriage A right at common law to marry exists unless state law affirmatively changes the right. Common-law marriage can be contracted in eleven U.S. states: Alabama, Colorado, Iowa, Kansas, Montana, New Hampshire, Oklahoma, Rhode Island, South Carolina, Texas, Utah, and the District of Columbia. The requirements for a common-law marriage to be validly contracted differ in the eleven states which still permit them. A common-law marriage is recognized for federal tax purposes if it is recognized by the state where the parties...

The Premarital and Postmarital Agreement

By Leigh-Alexandra Basha | Estate planning, Family and matrimonial law, Living will and testaments | 6 min read

The Premarital and Postmarital Agreement - consider it when tying the knot or thereafter. Legal and tax considerations of pre and postmarital agreements? Marriage today is more complex than ever given the high rates of divorce, second marriages, blended families, and increasing globalization of couples. Anyone with significant property, an inheritance, a family business, or children from a prior marriage ought to consider a premarital agreement. Those entering a same sex marriage or civil union should also consider one. If the couple is...

Statutory succession or last will – what is what?

Many property owners as well as owners of other assets ask themselves whether it is advisable to make provisions for their own death, or whether it is better to simply leave succession to the (German) law. Nevertheless, the ability to take such a decision in an informed manner requires knowledge of the rulings contained in the law. Only those who know the statutory mechanisms can achieve an...

The Use of Swiss Family Foundations in Estate Planning

The Family Foundation is used hesitantly in Swiss succession and estate planning, although in recent years, the establishment of a foundation has been increasingly evaluated again. A robust estate planning ensures a reliable regulation and avoidance of conflicts amongst heirs. In each case, a tailor-made structure must be determined. While a testator may want to commit family assets over...

Accrual of inheritance involving assets abroad often underestimated

An international accrual of inheritance is given when for example a German testator holds assets abroad or vice versa a foreign testator holds assets in Germany. Due to the different national regulations in each country the international assets of e.g. Germans involve significant civil and fiscal-law risks if not structured carefully. Therefore it is advisable to concern oneself with this...

Organising the Family Business

Family reunions and family council Transparency fosters trust. As former US Supreme Court Justice Louis D. Brandeis once noted, "Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants ...." This holds true for families as it is applicable to the sound management of large commercial companies. The place where this...

Beware tax pitfalls when moving from one country to another

Swiss Courts ruled that a US citizen living in the UK could not get Swiss dividend tax back With a judgment rendered on 27 November 2020 (case no. 2C_835/2017), the Swiss Federal Supreme Court (“FSC”) confirmed a decision by the Federal Administrative Court (“FAC”) of 24 August 2017 (decision no. A-1462/2016) concerning a an individual tax residence matter that arose in the context of certain...

Wealth planning and offshore trust structures

Choosing the Right Offshore Jurisdiction Wealth and estate planning that make use of so-called offshore trust structures are popular. Such structures are useful for many reasons, including to support individuals and families who are seeking a change in residency, and to offer longevity, predictability and security that is not always available in one’s home country. They can more readily adapt...

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