MONACO Law and Practice Contributed by: Donald Manasse, Donald Manasse Law Offices
9. Planning for Non-Traditional Families 9.1 Children There is no difference in the treatment of children born in or out of wedlock. There are two levels of adop - tion ( simple and plénière ), but the CDIP provides that foreign adoptions are valid if they are not contrary to Monaco public order. Adopted children’s rights to inherit are recognised. Although Monaco law does not provide a specific framework for surrogacy, children born to surrogate mothers abroad are fully recognised as children of the parents bringing them to Monaco, as long as those persons are regarded as legal parents under the for - eign country’s law. 9.2 Same-Sex Marriage Monaco does not recognise same-sex marriages, even where they are validly contracted abroad, as confirmed by a recent ruling of the Tribunal Suprème (Monaco’s highest administrative court). Howev - er, there is a provision for a civil union, which pro - vides many of the advantages of marriage, including reduced (if not exonerated) estate taxes.
9.3 Cohabitation and Unmarried Couples Cohabitation between unmarried persons creates no rights and no benefits for purposes of tax and suc - cession planning.
10. Charitable Planning 10.1 Charitable Giving
Monaco laws apply a 16% tax to donations to unrelat - ed parties, including foreign charities. Such bequests must be approved by three high-level government councils and the sovereign prince. The process takes at least a year, and the fact of the donation must be published in the official journal to allow interested par - ties to oppose the bequests. 10.2 Common Charitable Structures Monaco’s law on foundations dates back to 1922, providing a certain permanence but also representing constraints. Authorisation to create a foundation may take as long as one year. The alternative is the asso - ciation, which has members and no limited liability, unlike the foundation, and can be freely constituted. This is the entity most frequently used for charitable purposes.
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