Estonia Company set up and Estate Planning

[berbo]

I wish to open an LLC company in Estonia that would hold my brokerage account .Most likely a brokerage account would have to be opened with IBKR or Saxo or Swissquote. Chances are that a US broker may not accept an account from an Estonian company.
It appears that holding the securities with a company might avoid the Estate Tax in the US. I am not looking for the most lowest tax solution, rather a practical set up that can be useful in the future for my heirs.
I would appreciate if anybody has experience with this kind of Estonian Company and activity and advice on the do's and don'ts. Can a Holding company in Estonia have the activity of an Investment company ???The latter apparently needs a license.
Furthermore, would there be a particular structure that might be good for Estate Planning. My heirs are in Belgium, my tax residency is in Panama and I am approaching 70 yrs...
I also would like to hear from service providers familiar with the subject.
By the way I have verified to set up a Company structure in the USA, but prefer not to be entangled with IRS rules and excessive lawyer fees.

 

[Don]

I wish to open an LLC company in Estonia that would hold my brokerage account .Most likely a brokerage account would have to be opened with IBKR or Saxo or Swissquote. Chances are that a US broker may not accept an account from an Estonian company.
It appears that holding the securities with a company might avoid the Estate Tax in the US. I am not looking for the most lowest tax solution, rather a practical set up that can be useful in the future for my heirs.
I would appreciate if anybody has experience with this kind of Estonian Company and activity and advice on the do's and don'ts. Can a Holding company in Estonia have the activity of an Investment company ???The latter apparently needs a license.
Furthermore, would there be a particular structure that might be good for Estate Planning. My heirs are in Belgium, my tax residency is in Panama and I am approaching 70 yrs...
I also would like to hear from service providers familiar with the subject.
By the way I have verified to set up a Company structure in the USA, but prefer not to be entangled with IRS rules and excessive lawyer fees.

Indeed its better to use use a holding structure if you want to avoid your heirs paying 45% estate tax from your US stocks.
Estonia could possibly be a very good solution for this as income tax is not charged on accepted estate; even better is if you're willing to gift some of your assets to your heirs and they dont mind changing their tax residency for a year to Estonia to receive it all tax free.

Testament
o A testament may be notarial or domestic
o Domestic testament is only valid for six months
o note that an individual item cannot be inherited, only a legal share (fraction) of the property

 

[zzzzzz]

Indeed its better to use use a holding structure if you want to avoid your heirs paying 45% estate tax from your US stocks.
Estonia could possibly be a very good solution for this as income tax is not charged on accepted estate; even better is if you're willing to gift some of your assets to your heirs and they dont mind changing their tax residency for a year to Estonia to receive it all tax free.

Changing tax residency for a year? Belgium taxman is not that stupid.

 

[Don]

Changing tax residency for a year? Belgium taxman is not that stupid.

Always seek professional advice and take calculated risks (I think this is very much what this forum is about).
That being said its impossible to provide any meaningful advice not knowing the whole story. Maybe the heirs are Panamese studying in Belgium for 1-2 years. It all "depends"

 

[lacomaco]

I wish to open an LLC company in Estonia that would hold my brokerage account .Most likely a brokerage account would have to be opened with IBKR or Saxo or Swissquote. Chances are that a US broker may not accept an account from an Estonian company.
It appears that holding the securities with a company might avoid the Estate Tax in the US. I am not looking for the most lowest tax solution, rather a practical set up that can be useful in the future for my heirs.
I would appreciate if anybody has experience with this kind of Estonian Company and activity and advice on the do's and don'ts. Can a Holding company in Estonia have the activity of an Investment company ???The latter apparently needs a license.
Furthermore, would there be a particular structure that might be good for Estate Planning. My heirs are in Belgium, my tax residency is in Panama and I am approaching 70 yrs...
I also would like to hear from service providers familiar with the subject.
By the way I have verified to set up a Company structure in the USA, but prefer not to be entangled with IRS rules and excessive lawyer fees.

Shares in the Estonian company will probably also part of the inheritance in the US at an assessed value

 

[pfser]

Can a Holding company in Estonia have the activity of an Investment company ???The latter apparently needs a license.

Would you accept 3rd party funds or just operate your own funds? Based on the investment funds act of Estonia, An investment fund is a legal entity or pool of assets which involves the capital of a number of investors with the view of investing it in accordance with a defined investment policy for the benefit of the investors in question and in their common interests.
If you operate with your funds in your interest, then a holding company can have the activity of an "investment company" and you can freely have a brokerage account.

 

[berbo]

pfser, thank you for your message. This company would indeed only operate with own funds.
qte a holding company can have the activity of an "investment company" uqte, sounds weird but that appears to be accepted in Estonia.

 

[lacomaco]

pfser, thank you for your message. This company would indeed only operate with own funds.
qte a holding company can have the activity of an "investment company" uqte, sounds weird but that appears to be accepted in Estonia.

Most probably investments between companies belonging to the same group. Investment management to outside clients are not permitted while intra-group activities are. Nothing special

 

[pfser]

pfser, thank you for your message. This company would indeed only operate with own funds.
qte a holding company can have the activity of an "investment company" uqte, sounds weird but that appears to be accepted in Estonia.

Then I do not see any obstacles. To be on the safe side, once (or before) the company is formed, you can order a legal opinion.

 

[lacomaco]

Then I do not see any obstacles. To be on the safe side, once (or before) the company is formed, you can order a legal opinion.

If the OP wants to throw money to lawyers, then why not... Otherwise I would not spend a penny on them, except the company formation. On the other hand I am just curious why the name should include "investment" if the activity is not to the outside world