FIDUCIE AND PRIVACY
Privacy : from ” 1984 ” to today
On 8 June 1949, George Orwell published his famous work “1984”, a dystopian novel in which he described the consequences of totalitarianism and mass surveillance within society.
Although the date announced (1984) was not as accurate as he had anticipated, Orwell’s prophecy nonetheless came true a few decades later, since we now all live in a world of surveillance – digital surveillance at the very least – of our behaviour and of our possessions.
This state of affairs is more or less pronounced depending on the political and cultural conceptions of each country and region of the world (particularly developed in Asia and across the Atlantic, respectively in China with the “Social Credit” mechanism and the “Credit Score” in the United States, which rate individuals according to economic and social criteria).
What all these mechanisms have in common is that they rely on technology and on the cross-referencing of records. Thus, when you buy a vehicle or a property, for example, it is administratively attached to your name or to that of your company, which is itself in turn linked to your identity through the register of beneficial owners.
In practice, therefore, you have no privacy at all, since the authorities (and potentially) anyone gaining lawful or unlawful access (in the event of a data leak) to this information can know very precisely the extent of your wealth and of your assets.
In certain cases, this may create a risk to your personal safety or to that of members of your family.
How to protect your privacy through the fiducie (the French-law fiducie) ?
Protecting your privacy
To remedy this problem and circumvent this difficulty with a view to security, tranquillity and serenity, great families and company directors have grown accustomed to sheltering the whole of their wealth in fiducies or trusts so as to enjoy their wealth fully without exposing themselves.
This recalls the famous phrase of John D. Rockefeller: « Own nothing, control everything ».
Indeed, if no one knows what you hold, then not only can no one envy you but, above all, no one can bring proceedings against you or seek to seize your assets.
The greater your wealth, the more you are statistically exposed to these risks.
A litigation risk higher than is commonly believed
Each year, more than 14 million civil proceedings are commenced in the United States and more than 2.2 million in France alone.
What the fiducie (the French-law fiducie) changes for your privacy
The fiducie therefore enables you not only to render your wealth immune from seizure, as we have set out and explained in other articles published in our analyses, but also and above all, which is priceless, to protect your privacy and to gain in peace and serenity by entrusting the legal ownership of your assets to an avocat acting as Fiduciaire who, through his experience of the law and of litigation, will always be better able to protect it than you could ever do yourself.
Frequently asked questions on the fiducie and privacy
How does the fiducie protect privacy?
The fiducie, the French-law fiducie, makes it possible to hold and manage assets through a Fiduciaire, without the identity of the Settlor systematically appearing to third parties. It thus offers enhanced confidentiality over the holding and the management of wealth.
Is the fiducie anonymous?
No, the fiducie is not anonymous: it is declared to the tax authorities and entered in the national register of fiducies. It offers confidentiality vis-à-vis third parties, but remains transparent to the authorities.
Who may have an interest in protecting their privacy through a fiducie?
Persons exposed to the media, executives, wealthy families or anyone wishing to avoid public exposure of their wealth may have recourse to the fiducie to preserve their discretion.
Is the confidentiality of the fiducie lawful?
Yes. The confidentiality afforded by the fiducie is perfectly lawful provided that the tax reporting obligations and the register of fiducies are complied with. It is not a tool of concealment but one of protection of privacy.
How is a confidential fiducie set up?
An avocat acting as Fiduciaire draws up a bespoke contract and carries out the management in compliance with the legal obligations while preserving your discretion. You will never be able to provide this level of protection and legal certainty on your own.
The House of Harlington since
2006