Private Client news
Overview of the latest Private Client news
Inheritance tax on jointly held bank accounts and securities portfolios after the death of a spouse
23 June 2020
The Ghent court of first instance ruled on children’s rights to bank accounts and securities portfolios in a situation where these were not liquidated and allocated after the death of a spouse. At the time of the first spouse’s death, the children had already paid inheritance tax on half of the assets, but the Flemish tax authorities did not want to take this into account when calculating the inheritance tax in the second spouse’s succession. We share some advice in preventing misunderstandings with the Flemish tax authorities.
Mandatory bookkeeping by Belgian civil law partnership: draft advice published
25 May 2020
Since the new Code of Economic Law, Belgian civil law partnerships qualifiy as 'enterprises'. Consequently, civil law partnerships are obliged to keep accounts. If the return of the last financial year is below EUR 500,000 (excl. VAT), single-entry bookkeeping will suffice. If the return meets the EUR 500,000 threshold, double-entry bookkeeping is mandatory. The CBN/CNC recently published a draft advice with more details on the single-entry and double-entry bookkeeping rules for civil law partnerships, also broadening the scope, including some portfolios held in undivided property by a family.
Wealthy families: breeding ground for family conflict
28 April 2020
Wealthy families are complex systems that may give rise to conflicts. Based on conflict literature and our ‘three gear model’, we identify no less than 28 potential sources of conflict given the interaction between private life, business as well as investment wealth. We propose that families develop a ‘conflict embracing’ mindset in which conflict is seen as an energy source that can be used for growth. In addition, many families would benefit from learning how to deal with conflicts in a constructive way in order to avoid conflict escalation. This is on ongoing process in which people should be involved as early as possible by developing their communication skills.
Flemish inheritance tax in times of COVID-19
22 April 2020
Both the Flemish Tax Authority and Flemish Legislator have taken measures to ensure tax payers are provided with the necessary flexibility regarding the completion of formalities and payment of inheritance tax in times of COVID-19. On 21 April 2020, a decree entered into force allowing heirs to make an additional choice for the valuation of publicly listed companies' shares that they inherit during the pandemic.
COVID-19 and future-proof wealth management: the right person in the right place at the right time
20 April 2020
During these uncertain and unprecedented times it is worth reflecting, both personally and professionally, on the crisis resistance of your business and personal asset management.
Peace of mind is brought by arrangements and constructions that guarantee continuity in the midst of calamity. This peace of mind is crucial, as many other decisions have to be taken to manage the COVID 19-challenges.
Flemish Tax Authority: impact of COVID-19 on inheritance tax filing deadline
19 March 2020
Due to the COVID-19 outbreak, the Flemish tax authority announced that they will be flexible in granting filing deadline extensions for inheritance tax (upon request). If a tax filing extension request is filed in a timely manner, there will be no penalties for late filing.
Day-to-day settlement clause in a marriage contract: 14 November 2019 Decision of the Court of Cassation
7 February 2020
In its decision of 14 November 2019, the Belgian Court of Cassation ruled on the interpretation of a day-to-day settlement clause in a marriage contract of separation of property.
The fourth tool of estate planning between spouses: attribution clauses of undivided property between spouses married with a marital contract of property separation
21 November 2019
To obtain maximum protection and comfort for the surviving spouse, with acceptable tax consequences, several techniques are available. Between spouses married under a ‘separation of property regime’, an attribution clause regarding undivided property is a useful alternative to an attribution clause in a community property regime, or to the final participation clause or accrual clause for spouses married with a contract of property separation.
Deprivation of the surviving spouse’s legally granted usufruct
18 November 2019
Under the new Belgian inheritance law, the surviving spouse inherits a right of usufruct on property donated by the deceased, with reservation of usufruct during marriage, provided that this usufruct was maintained by the latter until death. The unilateral deprivation thereof is only possible in a last will. Eliminating this legally granted usufruct in the initial donation (or any other contract) always requires the surviving spouse’s consent.
Constitutional Court rules on the annulment of the tax on securities accounts
18 October 2019
In its judgment of 17 October 2019, the Constitutional Court cancels the tax on securities accounts.
However, in order to take into account the budgetary and administrative consequences, as well as the litigation that could arise from this cancellation judgment, the Constitutional Court decided to maintain the effects of the tax for this year (i.e. annulment without retroactive effect).
Family wealth: More than just a business
15 October 2019
When it comes to wealthy families, emphasis is often placed on the family business as a vehicle for growth, succession and prosperity. In this article, we propose that the family business can be an overly narrow interpretation of family wealth. In that sense, family members may only see a few pathways for how they can contribute to sustainable shareholdership. We extrapolate the meaning of “wealth”, and offer a broader scope for families so they can seize the opportunity for an inclusive, sustainable vision on shareholdership.
Dutch foundation administration office (StAK) captured by the Cayman Tax?
27 September 2019
Although several arguments exist to counter the qualification of a Dutch foundation administration office (StAK) as a legal arrangement, certificate holders should consider to report the StAK as a legal arrangement in their personal income tax return.
Belgium’s UBO-register: tolerance policy until 31 December 2019
25 September 2019
The deadline for completing the UBO register (30 September 2019) is in sight. On 23 September 2019 the Treasury announced that there will be no additional postponement, but that it will carry out a tolerance policy until 31 December 2019 and will not impose sanctions during that period.
Enterprising families rightfully doubt the value of values
12 September 2019
A different approach on family values can unlock insights for families to successfully navigate their private, business and investment spheres. In this article, Greenille by Deloitte Legal – Lawyers’s Family Dynamics experts outline common pitfalls, and describe concrete solutions to harness family values as a sustainable competitive advantage.
Belgian UBO-register and listed companies
29 August 2019
The deadline for the first submission to the UBO-register is fast approaching (30 September 2019). In an addendum of 26 August 2019 to the UBO FAQ of 22 July 2019, the Treasury clarifies the interpretation of the UBO-registration exemption for listed companies (Dutch | French; under 2.1.4).
Exit participation clause in the Flanders region (bis)
8 August 2019
In the Flanders Region, a participation clause (in a marital contract of assets separation) has been subject to inheritance since 24 December 2017. In its decision of 10 July 2019, the Constitutional Court upholds the constitutional validity of the inheritance tax consequences of a final participation clause in the Flemish Region.
Belgian UBO register: ‘Foundation administration office’ FAQ published
24 July 2019
The treasury recently published a brand new FAQ (NL – FR) regarding UBO register procedures when a Foundation administration office (‘Stichting Administratiekantoor’ | ‘Fondation bureau d'administration’) is involved. The FAQ offers answers to practical questions, details how to determine the ultimate beneficiary owners (UBOs), and addresses privacy concerns. With this FAQ, the treasury finds a balance between the international call for transparency on the one hand and the requests from families to respect certain private aspects of their planning on the other hand. At the same time, the Treasury applies the current Anti Money Laundering Directive, its Belgian legal implementation and respects the (sometimes difficult) differences in the application of these rules to companies, other entities, and companies held through other entities.
The family council
17 July 2019
Enterprising families struggle to keep every member aligned regarding day-to-day affairs, as well as major strategic decisions concerning the private, business and wealth spheres. A family council could be the platform to keep everyone on the same page. However, how do you design, implement and maintain a family council that meets the specific needs of every family member? In this article, Greenille by Deloitte Legal – Lawyers provides a blueprint for enterprising families and their advisors to make the family council work for them.
EU Succession Regulation and habitual residence
20 June 2019
The Regulation employs the notion of “habitual residence” of the deceased at time of death as a general connecting factor to determine both jurisdiction and applicable law. On 29 May 2019, the French “Cour de Cassation” ruled on the notion of “habitual residence” in a succession with cross-border implications.
The time has come for enterprising families to embrace the notion of ‘sustainable shareholdership’, especially in times of succession
24 May 2019
Enterprising families too often end up conflicted in times of succession. This can often be explained by the fact that succession is defined too narrowly, focusing solely on ‘who gets to be the new CEO of the family business’. In order to deal with succession in a smooth way, Greenille by Deloitte Legal – Lawyers offers enterprising families a unique matrix to plot family roles to open up the scope of succession and embrace diversity in talent and ambition.
What can sushi teach us about family business succession?
8 April 2019
‘Jiro Dreams of Sushi’—a documentary that aired in 2011—portrays the life of the 85-year old sushi master Jiro Ono and his two sons.
Below the surface of the only sushi restaurant in the world awarded with three Michelin stars, one finds more universal challenges that every family business faces.
In this article we use valuable insights from ‘Jiro Dreams of Sushi’ to formulate questions for family business owners and advisors towards a more unified perspective on ‘sustainable shareholdership’
Belgium’s UBO register: updated FAQ published
5 April 2019
The long awaited update to the UBO FAQ is available on the Treasury’s website since 2 April 2019 (Dutch | French). In addition to the FAQ, the user manual for legal representatives of non-profit associations and foundations has also been updated.
This update also provides some details on more complex issues, which remained unaddressed in earlier versions of the FAQ. What follows is a selection of the most important clarifications from a private client’s perspective.
New legislation in the Flanders Region for inheritance tax proceedings
28 March 2019
A decree of 21 December 2018 provides that the Flemish Tax Authority will be obliged to give notice within two years after expiration of the delay to file an inheritance tax declaration if it challenges the value of the declared assets. A similar rule was introduced for gifts, or transfers of real estate. The new rule should contribute to more legal certainty.
UBO-registration deadline postponed until 30 September 2019
14 February 2019
It has been confirmed that the deadline for the registration of UBOs in the Registry has been postponed again, this time until 30 September 2019. The UBO-registration was initially foreseen for 30 November 2018 but was immediately postponed until 30 March 2019.
Application of the European Regulations on Matrimonial Property Regimes and the Property consequences of Registered Partnerships
12 February 2019
On 29 January 2019, the European Regulations on Matrimonial Property Regimes and the Property consequences of Registered Partnerships became applicable. The Regulations harmonise in the area of jurisdiction, applicable law and the recognition and enforcement of decisions in matters of matrimonial property regime and in matters of the property consequences of registered partnerships.
Cayman Tax amended once more
5 February 2019
On 31 January 2019, the Belgian federal parliament approved a law on fiscal, anti-fraud, financial and miscellaneous provisions (“the Law”).
The Law extends the tax audit period for income tax fraud (illegal tax evasion) from 7 years to 10 years, provided such fraud involved the use of a legal arrangement (as defined under the Cayman Tax Legislation).
Real subrogation: Flemish Tax Authority imposes condition
22 January 2019
Real subrogation has both civil and tax relevance, but one has to document everything properly when replacing one good with another. With this article, Greenille by Deloitte Legal – Lawyers aims to underline the importance of providing proper documentation when claiming real subrogation, because the tax authorities do pay close attention to this.
Occupation rent in divorce cases
17 January 2019
Unfortunately, divorce cases easily end up in long-winded proceedings. Not only should child arrangements be made, but also property arrangements. The preparation of the latter, i.e. division of matrimonial property and assets, involves a lot of paperwork. With this article, Greenille by Deloitte Legal – Lawyers aims to underline and clarify the importance of good administration and more specifically what impact this can have in terms of occupation rent.
Belgian tax on securities accounts: action required?
18 December 2018
A few appeals before the Constitutional Court were submitted against the annual tax on securities accounts. In order to safeguard your rights in light of a possible annulment by the Constitutional Court, it may be useful to submit a reasoned request for restitution. The deadline to submit this request is 31 December 2019, but the request should preferably be submitted before the Constitutional Court’s final decision (probably fall of 2019).