Navigating Latin American Family Offices

Thank you to Erik Halvorssen for sharing their expertise and experiences.

CHARLESTON, SC - In an insightful conversation on wealth management nuances across different regions, Klosters Capital sheds light on the distinct challenges and strategies involved in managing wealth for Latin American clients. With a focus on privacy concerns, multi-jurisdictional accounts, and the complexities of U.S. taxation, Klosters offers a deep dive into the unique landscape of managing high-net-worth individuals from Latin America.

Key Points:

1. Privacy and Security Concerns:

• Latin American clients often face life-threatening risks related to financial transparency, including kidnapping and extortion, making privacy a paramount concern.
• The need for confidentiality dictates that these clients generally provide limited information to financial institutions, impacting how wealth management services are provided.

2. Navigating Multi-jurisdictional Challenges:

• Klosters Capital emphasizes the importance of understanding and managing assets across multiple jurisdictions, a common scenario for their Latin American clients.
• They coordinate with various international banks and legal structures to ensure comprehensive management of their clients' portfolios.

3. U.S. as a Financial Safe Haven:

• Despite complexities with U.S. taxation, many Latin American clients view the United States as a safer jurisdiction for their assets due to its stable legal framework and financial systems.
• Klosters assists with setting up appropriate structures to protect clients from potential U.S. estate taxes, which can be significant for non-U.S. persons.

4. Use of Life Insurance in Wealth Management:

• Klosters leverages life insurance as a strategic tool for providing liquidity and safeguarding assets. This method is particularly advantageous for addressing state taxes and ensuring immediate financial support for families upon the policyholder's demise.
• The firm discusses how they structure policies to optimize benefits and minimize costs, using techniques like premium financing to make large policies more accessible.

5. Strategic Adaptations and Client Education:

• Adapting strategies to suit the highly discreet and security-focused needs of Latin American clients involves extensive planning and customization.
• Educating clients about the intricacies of life insurance and its benefits as part of a broader wealth management strategy is a critical component of Klosters' service.

Erik's approach to managing Latin American wealth underlines the importance of tailored financial solutions that respect client privacy and address specific legal and fiscal challenges. Their expertise in handling complex multi-jurisdictional issues and their use of sophisticated tools like life insurance for asset protection exemplify advanced strategies in international wealth management. For those navigating similar challenges, Klosters offers valuable insights and solutions that ensure both security and growth of family wealth.

For more details on these topics and further insights from Erik Halvorssen , please refer to the full podcast episode below.

How to Listen to the Episode:

?? Podcast: https://www.buzzsprout.com/2328671/15117517

?? Youtube: https://www.youtube.com/watch?v=WrpaoIcuWZU

How to Connect with Angelo:

?? LinkedIn: Erik Halvorssen

?? Website: https://klosters-capital.com/

About Nuvo Capital Partners:

?? LinkedIn: Nuvo Capital Partners

?? Host: Lenny Pisano