Estate Planning in Luxembourg
Estate Planning in LuxembourgUpdated on Wednesday 22nd February 2023
Rate this article
based on 1 reviews.
based on 1 reviews.
Estate planning is the process of controlling and arranging an individual’s assets after he or she is incapacitated or in anticipation of death. It includes both the managing of the assets during the individual’s lifetime and their transfer to the appropriate parties, as per the individual’s wishes, after he or she is no longer able to manage them. An estate plan needs to be drafted according to the specific situation of the individual and in accordance with the applicable tax law.
Our lawyers in Luxembourg are experienced in estate law and they can help you manage all and any assets. Because estate planning is a process that takes place during a longer period of time, business owners in Luxembourg and high-income individuals should consider seeking the services of a professional for this matter.
Main aspects of estate planning
The individual’s goals and investment choices are very important and should be discussed thoroughly with the estate attorney. Estate planning usually starts with drafting a will in which the client expresses his or her wishes as how his or her assets will be distributed to the heirs. An executor of the estate can be appointed to oversee that the terms of the will are observed.
Entrepreneurs in Luxembourg who do not consider estate planning may unwillingly cause burdensome issues to family and partners if their affairs are not left in order. Careful estate planning, combined with efficient tax reduction and tax management should be considered for reducing estate taxes.
If you plan to immigrate to Luxembourg for longer than 3 months and are not a citizen of the EU or EEA, you must apply for a residence visa before traveling there. Your specific situation will determine which permit you require; for example, if you intend to work in the Grand Duchy, you will also need a work visa.
The main ways to secure assets in Luxembourg
Estate planning involves the use of more than one device to secure, manage and transfer assets. Wills and trusts are the most common way to accomplish this. Life insurance plans for the beneficiaries, annual gifting estate or using charitable trusts to reduce the taxable estate are also available options.
Professional estate planning lawyers know that the most important aspect is that the transfer of wealth is made in accordance with the client’s needs and wishes. If you are living in Luxembourg or own a business there, you can contact our lawyers in Luxembourg for more information about estate planning.