Now that it appears that he has won a narrow victory that will keep President Chavez’s in power in the future, wealthy Venezuelans know that they will be asked to stump up to pay for his government’s policies. This is especially true as plummeting oil prices means that this traditional source of bread and circuses is no longer available. It is for this reason that they are already looking to take themselves and their assets out of his ever tightening grip.

Given its familiarity, the wealthy often first look to Miami as a destination . In fact there has been a well documented transfer of wealth and people from Venezuela to South Florida since Hugo Chavez took power LINK. While most immigrants will be able to comfortably reestablish themselves in Southern Florida, this strategy is not the wisest move for the wealthiest members of Venezuelan society. High US income, capital gain and estate taxes, liberal (by Venezuelan standards) divorce settlements and no financial privacy (which can expose family members remaining in Venezuela to kidnapping) makes a move to Miami like a jump out of the pot and into the fire. Strategic planning rather than reactive panic is essential.

Recently I was part of a team of lawyers who advised a wealthy family on how to establish themselves outside of Venezuela (including an estate in Florida) is such a way as to reproduce their prior standard of living while preserving their assets that they can pass on to their children and grandchildren. We also ensured their continuing ability to travel even if Chavez decided to cancel their Venezuelan passports in an effort to exert pressure on them. Finally we devised a legal practical strategy to get their assets out of Venezuela and protect their remaining investments in that country. As with an well thought out and executed strategy the key is to start as early as possible to avoid the mad rush out the door. 

David S. Lesperance, Barrister and Solicitor