Case Studies

Case Study 1

Overseas resident wishing to acquire a home and business in Florida.

Mr. Welltodo decides that due to the European winter climate and the current exchange rate against the US$ thought it would be a nice idea to buy a water front house on Marco Island. He and his family already have a second home and yacht in Southern Spain which they utilise mostly in the summer months but having recently sold his business, he now has more time to enjoy his leisure especially in the winter months. Having identified their dream property, Mr. W approaches AOMAC for assistance.

1. The first step is to establish his nationality, domicile and current residency and what short, medium and long term plans the family have for the future. At this juncture Mr W is made aware that as part of the client due diligence process, he will be required to produce at least two original or certified true copies of photograph I.D.s, together with recent (3months or less) proof of residency (utility bill or bank statement) and a bank reference letter. This information will be treated as confidential but will be needed if a trust, company or bank account is to be established.

2. Step two would be a meeting with a suitable tax and estate planning lawyer or tax adviser who will recommend an appropriate entity to hold title to the property which Mr. W has chosen. During the course of this meeting, the customer mentioned that he has monies in Switzerland and not only could be this used to acquire the property but would also like to buy another boat and perhaps invest in or purchase a business in the area. Having in this case identified his needs, the recommendation is for Mr. W to form an offshore trust which in turn would own a non-US company to be the parent of the Florida Corporation and LLC being the property and the business he hopes to find.

3. Having been given the brief to setup and administer this structure, AOMAC arranges for the creation of a foreign trust with overseas trustees followed by the establishment of a new British Virgin Island holding company where the management emanates from this jurisdiction. Once funded, instructions are given by the directors of the new entity to create a new Florida corporation to take title to the family house in Naples and a second to standby funded and ready to acquire a possible going concern.

4. AOMAC liaises between the legal owners (now the foreign trustees), the customer, the lawyers, the selling property agent and various other brokers and agents to acquire the real estate. Insurance is arranged, utilities established, furniture Mrs. W chose is delivered, a boat is purchased and finally the family arrive from the summer in Spain to move into their new home.

5. On an ongoing basis, AOMAC ensures that the property is fully insured, the utilities are paid, the pool is maintained and the grass is cut. Any repairs or maintenance are dealt with in a timely manner and a statement of affairs is periodically presented to the owner. At the year end, the corporate returns and annual accounts are submitted to the duly appointed tax adviser, who makes the statutory submission.

6. As administrator and local representative of this arrangement, AOMAC stands by to assist in the acquisition of the business with the appointed legal advisers and representatives once Mr W has identified a suitable venture. On an ongoing basis and periodically, AOMAC will consolidate and report on all the activities.

Case Study 2

US resident or citizen wishing to acquire an interest in overseas property.

Mr Magnate has done well in the US property markets but now wishes to expand and diversify his portfolio to overseas property interests. He knows that AOMAC provides overseas services to US residents and arranges a meeting to discuss his plans.

1. AOMAC asks Mr Magnate to detail his current personal situation and his plans for the future, including any intention he may have to live overseas. He is provided with the standard AOMAC client due diligence process checklist to enable him to prepare the necessary paperwork should he wish AOMAC to provide ongoing services.

2. Next, Mr M will meet with a suitable tax and estate planning lawyer who will recommend an appropriate entity to hold title to the property, explaining the various benefits of the structure. Based upon the Mr M’s wish to establish a portfolio of interests in international properties the adviser recommends a structure consisting of an offshore company to hold each interest held under a holding company, which is then owned by a trust.

3. Then AOMAC introduces Mr M to various specialists in international property, including AOMAC Properties LLC, [link to website], who are able to provide Mr M with information regarding the generalities of international property and also provide specific examples and currently available opportunities.

4. Mr M decides to make a purchase via AOMAC Properties and instructs AOMAC to put the full structure in place and provide the necessary offshore corporate entity to hold the asset and to liaise with AOMAC Properties to complete the transaction.

5. AOMAC establishes a Trust for the client, incorporates a holding company and a BVI International Business Company, which becomes legal owner of the property interest, after AOMAC liaises with the client, the lawyers, the selling property agent and various other brokers and agents. Insurance is arranged and a local managing property agent appointed.

6. On an ongoing basis, AOMAC ensures that the property is fully insured; that the managing agent provides appropriate service and financial reporting; that maintenance matters and any local fees, taxes or returns are dealt with promptly.

7. At the year-end AOMAC ensures that the corporate returns and annual accounts are submitted to the duly appointed tax adviser, who makes the statutory submission.

8. As local liaison, AOMAC continues to assist the client in identifying and making further purchases overseas. On an ongoing basis and periodically, AOMAC provides the client with a consolidated report on all the activities.

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