2. BARCLAYS WEALTH ADVISORY
Meet the family
The Al B*C* Family
Hussain and Mohammed are brothers and both in their 60s
6 children between them
9 grandchildren so far…..
Business Interests
Successful construction business operating across the GCC
Hussain and Mohammed now want to start planning for the family’s future.
3. BARCLAYS WEALTH ADVISORY
The family goals
Business
Brothers will remain in control of business but incorporate younger family members over time
Respect for Shari’a and want to consider impact on succession plans and estate distribution
Family
Brothers want to see there grandchildren educated in the UK and make provision for this.
Other Plans
Plan to purchase a new property in London for £15m
Tax and Debts
The brothers are aware that there could be some taxes to pay after their lifetime and want to plan for these
Also wish to ensure that all personal debts are repaid upon their passing
Philanthropy
They want to make provision for charitable gifts during and after their lifetime
5. BARCLAYS WEALTH ADVISORY
What did we do ?
Time - we spent time with the family getting to know them and talking to them about everything.
Trust - built on the trust we had been granted through our existing banking relationship over several years
Planning – Internal and External – plan ourselves and plan with our professional advisers, then plan with the family
Patience !
Proposal – around 18 months after we started the personal succession planning discussions, we got to the proposal
stage and it looked like this…..
6. BARCLAYS WEALTH ADVISORY
What did we propose ?
PTC
Personal
AssetsTrust
Insurance
Trust
Educational
Purpose Trust
Offshore
company
holding Barclays
portfolio
Offshore
company
holding other
bank portfolio
Offshore
company
owning policy
Offshore
company
owning policy
Offshore
company
owning assets
Loan
Loan (70%)
Portfolio (30%)
+
London Property Children / Grandchildren
7. BARCLAYS WEALTH ADVISORY
Overall Summary of Proposal for Family
Governance
Family and Corporate governance frameworks provide a clear and defined long term vision for both family and
business.
Private Trust Company
Control - gives the brothers the ability to develop and implement a central strategy and retain strategic control.
Next Generation - enables family members of successive generations to be brought into the management of the
family wealth over time.
Execution – can act as a trustee over a group of Trusts holding different assets.
Multiple underlying Trusts and Offshore Companies
Asset Protection, Privacy and Confidentiality - used to hold assets, segregate them and provide asset protection,
as well as provide privacy and confidentiality
Religious adherence - Allows for Shari’a concerns to be dealt with by aligning Trust capital distributions to be dealt
with appropriately.
8. BARCLAYS WEALTH ADVISORY
Detailed summary of proposal for family
Personal Assets Trust
£15m new London home for family was purchased using 100% lending.
Wanted to hold other banks portfolios inside the trust, so held in separate company.
Insurance Trust
2 x life insurance policies set up on lives of brothers for $50m with each premium funded with 90% lending.
The brothers opted for this solution to take care of there potential future inheritance tax liabilities from
overseas assets, as well as personal debts they were holding.
Educational Purpose Trust
Brothers wanted to set aside funds for education costs for their grandchildren who will probably be educated
in the UK.
Restricting UK beneficiaries from benefiting from income from offshore income producing assets to reduce
their UK tax liabilities.
9. BARCLAYS WEALTH ADVISORY
Conclusion
Succession planning is a significant challenge facing many of our family businesses today in the region.
As advisers to them, it is important for us to have a good understanding of their long term plans, so that we can
offer them the right advice and solutions, to enable their families to continue to be highly successful in what they do.
“The challenge of change is always hard, but we must take the first step to
begin”
10. BARCLAYS WEALTH ADVISORY
Disclaimer
This presentation has been prepared solely for discussion purposes and does not constitute an offer, an invitation or a recommendation to enter
into any transaction and does not constitute investment advice. Terms and conditions herein are indicative and subject to change and/or
negotiation between us. These materials do not constitute an offer for sale of securities anywhere in the world or a solicitation of any such offer.
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