Passing on your wealth in Luxembourg: SPF, gifts and anticipation

Anticipate rather than endure the transfer

Passing on your wealth in Luxembourg on good terms rests first of all on anticipation. A transfer prepared several years in advance makes it possible to organise the holding of assets, to allocate rights progressively among the heirs and to avoid conflicts and deadlocks at the time of succession.

This preparation combines several tools: structuring the holding through a wealth management company, framed gifts, agreements and governance clauses. The aim is to pass on control and value progressively and in a managed way, according to your family situation and the nature of your assets.

The role of the SPF

The family wealth management company, or SPF, is a Luxembourg vehicle dedicated to holding and managing private financial wealth: securities, financial instruments and cash. It cannot carry on a commercial activity or directly hold operating real estate.

Used with a transfer in mind, the SPF makes it possible to gather family financial assets into a single structure, to organise their holding among several family members and to prepare the handover. Its scope is regulated: its eligibility and its limits must be checked case by case by a lawyer.

Gifts, governance and coordination

A gift, whether of full ownership or with a reserved usufruct, makes it possible to transfer in stages while retaining prerogatives. Combined with a shareholders' agreement or with provisions in the articles, it organises future governance and protects the unity of the wealth.

The international dimension is common: the residence of the heirs, the location of the assets and the applicable treaties must be taken into account. The family office at Cerno Law Firm coordinates these aspects and, where the tax treatment of the transfer comes into play, relies on its tax team. A lawyer validates the whole arrangement.

Depending on your situation, the right balance is built over time. The firm's digital tools serve only to frame the initial meeting, not to provide personalised wealth advice.