PERU Trends and Developments Contributed by: German Carrera, Juliana Llosa, Yesica del Carpio and Moritz Abramovitz, CPB Abogados
CPB Abogados Av. Camino Real 456, Office 701 San Isidro Lima Peru Tel: 511 205 3030 Email: informes@cpb-abogados.com.pe Web: www.cpb-abogados.com.pe
The Evolution of Private Wealth and Succession Planning in Peru: Governance, Cross-Border Families and Transparency 1. Increase in domestic and international asset- holding structures Over the last decade, Peru’s political instability, com - bined with the impact of the COVID-19 pandemic, has significantly influenced decisions regarding wealth, business assets and succession planning. Greater awareness of mortality and increased international mobility have led many high-net-worth individuals to focus on estate planning and tax-efficient wealth structures. As a result, individuals are increasingly seeking to pro - tect and organise their wealth through the segrega - tion of personal and business assets, the continuity of family-owned businesses, and the implementation of clear succession plans. Ensuring that assets are transferred efficiently and in accordance with their wishes, while remaining compliant with applicable regulations, has become a key priority. To achieve these objectives, there is increasing inter - est in a variety of planning tools available, under both, Peruvian and foreign laws. The local tools commonly used to achieve efficient tax and succession planning are the following: a ) Separation of property regime Marital property regime has become an important aspect of private wealth planning. Under Peruvian law, spouses are subject to a community property regime unless they expressly choose a separation of property regime through a notarised document. As a result,
assets acquired during marriage may form part of a shared marital estate. For families with cross-border assets or international tax exposure, a separation of property regime may provide greater certainty by allowing each spouse to own and manage assets independently. This is par - ticularly relevant when one spouse has a different nationality, foreign tax residency or assets abroad. Asset protection is another key consideration. When one spouse is involved in business activities or invest - ments that carry commercial or creditor-related risks, a separation of property regime can help shield fam - ily wealth by keeping non-business assets under the ownership of the other spouse. Consequently, separation of property regimes are increasingly regarded not only as a marital property arrangement, but also as an effective wealth preserva - tion and risk-management tool within broader succes - sion and asset protection strategies. b ) Advancement of forced heirship rights Another planning tool that has gained relevance among Peruvian families is the advancement of forced heirship rights. Some parents prefer to organise the distribution of their estate during their lifetime, ensur - ing that specific assets are allocated to particular heirs, reducing the risk of future disputes and provid - ing greater certainty in the succession process. Under Peruvian law, an advancement of forced heir - ship rights is a lifetime gift made to an heir that is later charged against the heir’s inheritance rights or against one third of the estate. If an individual has children or
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