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PF MFO: “Optimising the transmission of your estate”

Passing on your estate, whilst preserving the interests of your loved-ones, requires planning and
structuring your succession. Philippe Feller, Managing Director of PF MFO, explains the advantages
of the Principality.

“Monaco attracts many people looking for political says Philippe Feller, who also offers to help set up we can play on the beneficiary clauses,” explains
stability, security, reduced income tax and, of a family charter. This - sometimes called a family Philippe Feller. The capital can also be distributed
course, a mild climate; but few are aware of the constitution in English-speaking countries - is a amongst the children or to charities, for example.
non-negligible advantage of the Principality in document drawn up by members of the same
terms of inheritance,” says Philippe Feller – and family, with the objective of defining a set of “We take care of
the advantage is considerable. Inheritance tax, common operating rules that respects family everything!”
which only applies to property located in the culture and values. This charter also makes it
Principality, is exempt in the direct line. “It is the possible to give a clear orientation for the new “An MFO is a like an orchestra
Philippe Feller, administrateur délégué / Managing Director only country in Europe, along with Luxembourg, generation and to calmly and transparently conductor. We don’t play any
where there is no inheritance tax for the direct prepare for the transmission of assets, anticipating instrument but we do bring the score
line of succession. For indirect line inheritance potential conflict and strengthening the family to life. We take care of everything,
rights, the Monégasque competitive advantage bond. “Parents and grandparents express their including installation in Monaco,
consolidation of assets, support for
is also significant: between brothers and sisters, wishes, as per a will or trust. We set up a family a real estate project, negotiation of
the tax rate is 8%, then 10% between uncles and committee that meets regularly. For example, loans, concierge services and so
aunts and nephews and nieces and, finally, 13% parents wishing to transmit their capital gradually on. Having a global vision allows
amongst other relationships. The rate applying can decide to give 15% at 20 years old, 20% at better asset management,” enthuses
between non-relatives is capped at 16%. “We are 30 and so on. The idea is to avoid the so-called Philippe Feller.
currently setting up the donation of a property ‘Ferrari’ risk. At 18, an heir is quite likely to buy After a long career with institutions in
located abroad via a donation made in Monaco. a Ferrari as soon as the estate is handed over!” Luxembourg and Monaco, this private
For comparison, for this property the beneficiary explains the PF MFO Managing Director. Another banker founded his own multi-family
will have to pay +/- 15%, compared to 57% if we solution for transferring your assets is to take out office in 2019. Since then, PF MFO
had done nothing.” a life insurance contract that allows you to settle has played the full service card, thus
part of your estate. “We generally favour contracts attracting a clientèle of business
From life annuity to family charter under European law taken out with Luxembourg life leaders, artists and high-level
Several tools currently exist to optimise the insurance companies. This very flexible and little- athletes aged between 30 and 80
transmission of one’s heritage. “For real estate, known-in-Monaco tool offers many advantages: and with assets ranging from €10 to
it is possible to make the donation of an SCI the capital is guaranteed by the Luxembourg state 100 million. “For some clients, I’m on
the third generation,” smiles Philippe
(multi-ownership company) or to make a life in the event of bankruptcy of the company; the Feller.
annuity. It all depends on the age of the client,” tax for French residents is reduced; and, finally,

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