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

 As world and local economic conditions worsen, the ethnic Chinese community in Indonesia are again getting nervous. Although they are leaders in the business community and control large parts of the Indonesian economy, the challenging global economic crisis is causing political leaders to again attack them rather than accept blame for some of the economic woes. As with the Jewish Diaspora in Europe during the 1920s and 1930s and the Indonesian Ethnic Chinese during the previous Asian economic crisis of 1998 LINK, politicians are able to convince the masses that their problems are caused by the visibly wealthy amongst them. The result can be not only harassment, but nationalization of property and businesses, and even threats to physical safety.

UHNW Ethnic Chinese in Indonesia are deciding that it is the better part of prudence that they spend a small portion of their wealth diversifying their Passport Portfolios™. Recognizing that they are vulnerable if their only passport is an Indonesian one that can be cancelled at any time, they are looking to immediately secure another citizenship and passport that will give them the ability to leave Indonesia or continue travelling while they are abroad. In addition, they are discovering that this additional passport allows them better visa-free travel then their existing Indonesian passport. Along with a second citizenship, they are also securing homes, offices, and residence permits that will allow them to immediate reproduce their Indonesian lifestyles at safe locations abroad. During a recent business trip to Singapore, various private client advisors I met with confirmed the increasing interest in this area. As with the logic behind buying fire insurance, it is prudent to plan for what may be a remote possibility, but one that if it occurs is devastating.

David S. Lesperance, Barrister and Solicitor