Private Wealth 2017 Comparisons

Last Updated May 24, 2017

Law and Practice

Author(s)

Juan McEwan specialises in private client work, with an international focus on estate and tax planning, and trust and succession planning. He advises high net-worth individuals, banks, trusts and foundations, in Argentina and abroad, in connection with all aspects of domestic and international estate planning and succession matters for individuals, trust and estate administration, charitable giving and the operation of tax-exempt organisations. He also assists clients on tax planning and structuring matters arising out of the management of their assets, with a strong emphasis on complex cross-border situations. Mr McEwan has co-authored books on international succession and private wealth. He is a frequent collaborator in publications concerning wealth planning and tax matters and has been a guest panellist at several conferences and seminars.

Agustín José Lacoste graduated as an attorney from Pontificia Universidad Católica Argentina (Buenos Aires). He specialises in tax litigation and individual tax and estate planning at domestic and international level and he is a member of the Bar Association of Buenos Aires City (Colegio Público de Abogados de Capital Federal). Agustín publishes articles on tax litigation, wealth and estate planning in Argentina and on international succession. He is currently a senior associate at McEwan, Roberts, Dominguez & Carassai. He is fluent in Spanish, English and Portuguese.

McEwan, Roberts, Dominguez, Carassai is the result of the merger between two professional firms: McEwan and Carassai - Durini - Robinson. McEwan was founded in 2004 with the aim of providing highly valuable, creative and reliable solutions by providing sophisticated tax-legal advice and tax services to high net-worth families, domestic companies, multinationals, and trust and investment funds. The team of professionals combines the different approaches to a full advisory service, from the unique perspective of lawyers and accountants, with special emphasis on the legal, tax and accounting aspects of the transactions or structures they are involved in, as well as on the appropriate management of the advice given to their clients’ family and businesses.

<p>The Argentine tax regime operates at the federal, provincial and municipal levels of government. The most relevant taxeslevied on individuals at the <b>federal level</b> are <b><u>income tax </u></b>and <b><u>personal assets tax</u></b>, although there are other taxes that may have an impact on wealth structuring.</p><p>Individuals residing in Argentina are subject to <b>personal income tax (</b><b><i>Ganancias Personas Físicas</i></b><b>) </b>on worldwide income. Briefly, the following will be deemed Argentine residents:</p><ul style="disc"><li value="1">Argentine citizens, whether native or naturalised individuals;</li><li value="2">foreign individuals who have obtained permanent residency status in Argentina or, if they have not obtained such status, have been in Argentina with temporary authorisations for 12 months (observing the temporary absences required by Argentine regulations); and</li><li value="3">undivided estates in which the decedent was an Argentine resident as of the date of his or her death.</li></ul><p>The applicable tax rate amounts to no more than 35%, and certain deductions are permitted. A tax credit will also be permitted with respect to a similar tax paid abroad.</p><p>Since September 2013 when Law 26.893 was published in the official gazette, capital gains derived by residents or non-residents from the alienation of shares, quotas and any other securities are subject to income tax. The Law provides that these capital gains are exempted if they are obtained by individuals or undivided estates resident in Argentina, in the event that the shares and securities are traded in a stock exchange or publicly traded. However, the Regulatory Decree (Decree of the Executive Branch No. 2,334/2013) provides that this exemption applies if the shares and securities are traded in a stock exchange or publicly traded (authorised by the Argentine Securities and Exchange Commission), and therefore it does not exempt shares or securities traded in a foreign stock exchange. As can be seen, the Decree adds an additional requirement to apply the exemption that the Law did not contemplate: trading must be performed through exchange markets duly authorised by the Argentine Securities and Exchange Commission. In this sense, the Decree could be challenged in court for violating the limitations that the National Constitution of the Argentine Republic subscribes to the Powers of the Executive Branch (Section 99, Subsection 2). In addition to this constitutional issue, the applicable tax rate is also under discussion. Under this Law, dividends or profits distributed by Argentine entities were subjected to a 10% withholding tax but, after the enactment of Law 27.260 (Official Gazette 22 July 2016), the 10% withholding tax on dividend distributions (whether in cash or in kind) was eliminated for both Argentine individuals and non-Argentine resident shareholders. However, it will remain applicable to Argentine legal entities.</p><p><i>Argentine residents </i>are subject to a tax that is assessed on all of the individual’s property located in Argentina and abroad (<b>Personal Assets Tax</b>), as of December 31st each year. Law 27.260 (enacted in July 2016) introduced the following changes:</p><ul style="disc"><li value="4">The Law progressively increases the minimum taxable base as follows: (1) from ARS305,000 (approximately USD20,000) to ARS800,000 (approximately USD53,000) in 2016; (2) to ARS950,000 (approximately USD63,000) in 2017; and (3) to ARS1,050,000 (approximately USD70,000) in 2018.</li><li value="5">The Law replaces the progressive scale, which has a maximum tax rate of 1.25%, with a fixed tax rate of 0.75% in 2016, 0.50% in 2017 and 0.25% in 2018.</li><li value="6">For companies, the Law reduces the tax on the net equity value of stock owned by Argentine individuals and foreign individuals or entities from 0.50% to 0.25%.</li></ul><p>This tax is also applicable to <i>non-residents </i>under the Substitute Taxpayer Regime (<i>Responsable Sustituto</i>), in which case it is assessed on property located in Argentina. Law 27.260 also introduced changes in the tax rate, so non-resident individuals are subject to a fixed rate of 0.75% for the 2016 tax period 2016, 0.50% for the 2017 tax period, and 0.25% for the 2018 tax period and subsequent periods. A tax credit will be permitted with respect to a similar tax paid abroad.</p><p>Expatriates residing in Argentina on work assignments for a period not exceeding five years are considered to be domiciled in Argentina, but they are taxed only on personal assets located in Argentina.</p><p>In Argentina, and for the moment, there is neither federal gift nor Inheritance/Estate Tax. The gift taxis applicable within the provinces of Buenos Aires and Entre Ríos. Even though the Buenos Aires province is the most populous jurisdiction in Argentina, accounting for approximately one-third of the country's total population, there are another 22 provincial jurisdictions in which no similar tax has been levied so far. However, it cannot be ruled out that the federal government may introduce similar taxes in the future.  </p><p>Gift tax is assessed on any increase in an individual’s wealth due to the receipt of a gratuitous transfer of assets from acts including inheritances, legacies and gifts. According to the law, the following are deemed to be taxpayers:</p><ul style="disc"><li value="7">Natural persons and legal entities domiciled within the province, who benefited from the gratuitous transfer. In this case, the tax applies to the total sum of the assets received by that person or entity.</li><li value="8">Natural persons and legal entities domiciled outside the province when the increase in their wealth comes from a gratuitous transfer of assets located within the province. In this case, the tax applies only to the amount of the increase derived from the transfer.</li></ul><p>There is a tax-free allowance of ARS50,000 on the aggregate of the lifetime gifts of an individual and the gifts at the time of death. This amount is increased to 200,000 pesos when the receiving party is the spouse, child or parent of the transferor.</p><p>The Tax Codes of the two relevant provinces establish subjective and objective exemptions.</p><p>Subjectiveexemptions include:</p><ul style="disc"><li value="9">Transfers for the benefit of the national government, the provinces or the city of Buenos Aires or any municipality, or any body of these institutions.</li><li value="10">Gifts to religious, public health, social assistance, cultural or public welfare institutions (provided those institutions comply with certain conditions).</li></ul><p>Objectiveexemptions include:</p><ul style="disc"><li value="11">The transfer of art or other objects that have a historic, scientific or cultural value, provided the deceased has transferred the property on the basis that the art or object is to be used for instruction or public exhibition purposes.</li><li value="12">The transfer of collections of books, newspapers, magazines or other periodic publications.</li><li value="13">The transfer on death of the household registered under the Family Household Protection Act (Law No 14,934), provided certain conditions are met.</li><li value="14">The transfer on death of an enterprise, provided certain conditions are met.</li><li value="15">The applicable tax rate varies from 4% to 22% depending on the value of the property transferred and the relationship between the transferor and the transferee of the property, and is assessed on the assessment value or the market value, whichever is higher.</li></ul>
<p>Throughout the past year there have been rumours that the Executive Branch may send a bill to the Congress to establish Inheritance/Estate Tax at a federal level.  </p><p>This has aroused concern among high net-worth individuals, particularly because the rumours came at the same time as they were deciding on whether to enter the Tax Amnesty Regime (Law 27.260), under which they would declare the possession of national or foreign currency and other property located in the country or abroad.  </p><p>As a consequence, consultations on tax and estate planning have increased considerably.  </p>
<p>In the first quarter of 2016 the executive branch (President Macri Administration) sent a draft bill to the Congress covering, among other issues, a tax amnesty and a moratorium. The bill was approved by the Congress on 29 June 2016 and published in the Official Gazette on 22 July 2016 (the “Act”).  </p><p>The aim of the Act was to encourage the disclosure of unreported assets and foreign currency (the “Disclosure Programme” or the “Programme”) and a moratorium for unpaid taxes (the “Moratorium”).  </p><p style="heading"><b>Disclosure Programme</b></p><p>The Disclosure Programme promoted the voluntary disclosure of assets and foreign and local currency (the “Assets”) held on 22 July 2016, and remained open until 31 March 2017. A special tax applied over the value in pesos of the disclosed Assets (the Assets must be valued according to the parameters determined therein and those determined by the Tax Authority to which the Act delegates certain regulations, eg real estate must be valued at a market value; the Exchange rate will be that of the Official Bank at 22 July 2016). The applicable tax rate varied, depending on the following:  </p><ul style="disc"><li value="1"><u>Date of disclosure</u>: for Assets disclosed before 31 December 2016 the applicable tax rate was 10%, increasing to 15% for Assets disclosed between 1 January 2017 and 31 March 2017.  </li><li value="2"><u>Type of Asset being disclosed</u>: a 5% rate applied to real estate in the country and/or abroad.  </li><li value="3"><u>Destination of the disclosed funds</u>: no special tax was applied if the disclosed funds were earmarked for the subscription of government bonds under special conditions. The Act contemplates two new bonds: one will have a three-year maturity at a 0% rate, be non-transferable, and should be acquired before 30 September 2016; the other will have a seven-year maturity and a tax rate of 1% per annum, and will be non-transferable for the first four years. This bond should be acquired before 31 December 2016. There is also no special tax applied if the disclosed funds were earmarked for the subscription/acquisition of participations in Mutual Investment Funds (FCI for its acronym in Spanish) under Laws Nos 24.083 and 26.831. These investments include those made to finance infrastructure works, the construction of dwelling units, mortgage credits or small- and medium-sized enterprises, among others. However, the benefit is conditioned on the investment remaining in the country for a period of no less than five years.</li><li value="4"><u>Value of disclosed Assets</u>: when the value of the Assets being disclosed was less than ARS305,000, the applicable tax rate was 0%. For Assets valued above ARS305,000 but less than ARS800,000, the tax rate was 5%. If the value of the Assets exceeded this amount, the following tax rates applied over the value of all Assets other than real estate: (i) 10% if disclosed before 31 December 2016; and (ii) 15% if disclosed between 1 January 2017 and 31 March 2017.</li></ul><p>Taxpayers who entered the Programme will benefit from a tax break with respect to all taxes owed in connection with the disclosed funds and will be released from any civil action and/or criminal tax, customs, foreign exchange or administrative process.</p><p style="heading"><b>Moratorium</b></p><p>Under the terms of the Act, taxpayers were allowed to cancel tax duties (due as of 31 May 2016) in up to 60 instalments, including those undergoing administrative or judicial proceedings before the courts. Penalties and accrued interest – both compensatory and/or punitive – will be waived.  </p><p>In addition, the Act established a 1.5% monthly interest rate. The Moratorium applied to tax and social security obligations, and enrolment in the plan was conditional upon a 5% initial payment. The Moratorium remained open until 31 March 2017.</p><p>In criminal cases, and as long as no final judicial decision had been passed, the request for a Moratorium suspended the criminal procedure and also interrupted the statute of limitations. In addition, compliance with this regime annulled any current criminal action. Failure to comply with the Moratorium, either in full or in part, caused both the criminal action and the statute of limitations to be resumed.</p><p style="heading"><b>Benefits for compliant taxpayers</b></p><p>Furthermore, the Act sets forth some benefits for taxpayers who have complied with their regular tax reporting obligations before the Tax Authority, who may apply for a special certificate in order to receive tax benefits (mainly an exemption in Personal Asset Tax for Fiscal Periods 2016, 2017 and 2018, included).  </p><p style="heading"><b>Other issues</b></p><ul style="disc"><li value="5"><u>Personal Asset Tax</u>: the Act includes staggered modifications in the non-taxable minimum amounts and rates of Personal Asset Tax.</li><li value="6"><u>Minimum Presumed Income Tax</u>: the Act includes the derogation of the Minimum Presumed Income Tax.  </li><li value="7"><u>Income Tax</u>: the Act includes modifications on Income Tax and provides that dividends, profit distributions by other entities and remittances by permanent establishments will no longer be subject to a 10% withholding tax, for neither residents nor foreign beneficiaries.  </li></ul><p>Finally, the Government announced the success of the Tax Amnesty, under which taxpayers declared USD117 billion in Assets. These figures place Argentine Tax Amnesty as the second most successful behind Indonesia who reached USD350 billion.  </p><p style="heading"><b>Forthcoming regulatory changes</b></p><p>The Executive Branch is evaluating a bill that contemplates an integral tax reform, which is sure to address income tax deferralthrough foreign vehicles, suggested by the creation by Law 27.260 of a reporting regime applicable to taxpayers who own more than 50% (or act as directors, managers or similar positions) in foreign companies, trusts, foundations and other entities that obtain more than 50% of their income from passive sourceswithin a given calendar year. The reporting regime requires taxpayers to provide certain details about such foreign entities. The Federal Tax Authorities will regulate the regime, including the terms and requirements that will have to be observed. Once the additional regulations are issued, taxpayers should ensure that they comply with this regime.</p><p>High net-worth individuals should take this new reporting requirement into account, together with the forthcoming regulatory changes, when designing and implementing their post-Amnesty tax planning.  </p>
<p>In Argentina, individuals used to keep their financial assets in foreign banks and companies, mainly in low or zero-tax jurisdictions, including, but not limited to, the Cayman Islands, the British Virgin Islands and the Bahamas.  </p><p>In 1999, a pre-announced change in tax regulations provided for the taxability of passive income generated by legal entities located in jurisdictions listed as non co-operative, and rapidly modified the structures that were so far maintained, transferring them to unlisted jurisdictions and under holding regimes.</p><p>This has permitted Argentine individuals and families to become familiar with the use of holding companies, in jurisdictions such as Uruguay or Chile, or in European countries, or even in the United States.</p><p>When organising this type of holding company, there are three main issues that should be taken into account: the corporate form; the taxability of dividends; and the application of a double tax treaty.</p><p>Dividends and profits derived from non-Argentine entities are subject to tax for the Argentine resident individuals or corporations participating in such entities. The timing for recognition of income derived from foreign entities varies depending on the type of foreign entity involved and the nature of the income obtained by such foreign entity.</p><p>In the case of foreign corporations whose capital is represented in shares, the general principle is that their profits are not taxable until a real distribution of dividends takes place. That is to say, the law acknowledges the corporation as an independent entity from the shareholders and assesses income upon distribution, except when certain international fiscal transparency rules apply (when they are located in a low or no tax jurisdiction and more than 50% of their income qualifies as “passive income”). In this sense, any passive income (interest, dividends, royalties, rentals, etc) obtained by the corporation should be recorded directly in the hands of the Argentine shareholder.  </p><p>In the case of corporations whose capital is not divided into shares, such as Limited Liability Companies and Partnerships, the Argentine legislation sets forth that results should be recorded in the hands of the Argentine resident even if those dividends have not been paid or distributed by the foreign entity.</p><p>Therefore, at the time of organising a family structure, special consideration should be given to the fact that the vehicle that is directly owned by an Argentine resident or by a company domiciled in Argentina should not belong to a partnership, but instead to a company whose capital must be represented by shares, so as to avoid an undesired tax burden.</p><p>Following the structure of a stock company (or corporation), it should be noted that the Argentine resident is to pay taxes at the 35% rate on any dividends he or she may receive from the foreign company. Notwithstanding this, there is an indirect tax credit regime, subject to the satisfaction of certain general requirements: for example, in the case of direct shareholdings, the Argentine resident must evidence a shareholding of not less than 25%, whilst for indirect shareholdings the Argentine resident must evidence a 15% shareholding interest.  </p><p>As mentioned before, Law 27.260 created a reporting regime applicable to taxpayers who own more than 50% (or act as directors, managers or similar positions) in foreign companies, trusts, foundations and other entities that obtain more than 50% of their income from passive sourceswithin a given calendar year. The reporting regime requires taxpayers to provide certain details about such foreign entities. The Federal Tax Authorities will regulate the regime, including the terms and requirements that will have to be observed. Once the additional regulations are issued, taxpayers should ensure that they comply with this regime. It is expected that income tax deferralthrough foreign vehicles will be addressed in the upcoming tax reform and will no longer be useful for income tax planning.  </p><p>However, and subject to the final terms of the aforementioned tax reform, revocabletrusts could eventually become an interesting alternative to serve both estate and – indirectly – income tax planning.</p>
<p>Argentina's tax procedure law (Law 11.683) has the economic reality principle as a general anti-avoidance rule. This means that the Federal Tax Authority (AFIP for its acronym in Spanish) can look to the actual economic transaction and disregard the legal form and structure used by the taxpayer.  </p><p>Besides, and as mentioned above, the Executive Branch is preparing a bill proposing an integral tax reform, which is likely to contemplate many of the actual topics being discussed at the OECD concerning ending abuses and loopholes in tax laws (Income Tax Deferral, Base Erosion and Profit Shifting, etc).  </p>

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<p>Argentina has a forced heirship (public order) regime. The forced heirship portion refers to a portion of the estate that is reserved for certain heirs (that is, the forced heirs) by law. This allows for descendants, ascendants and the surviving spouse to have a reserved portion in the deceased estate which cannot be deprived either by will or by any free <i>i</i>nter vivos act(gifts) (section 2444, Civil and Commercial Code (CCC)).</p><p>The CCC modified the reserved portions as follows:  </p><ul style="disc"><li value="1">descendants: the forced portion changes from four fifths to two thirds.</li><li value="2">ascendants: the forced portion changes from two thirds to one half.</li><li value="3">the surviving spouse: maintains their one-half reserved portion.</li></ul><p>These portions are calculated taking into account the sum of the liquid value of the estate at the time of the decedent's death and the gifts provided for each of the forced heirs at the time the gift was made.</p><p>The CCC introduces the concept of improvement, which allows the decedent to reduce the reserved portion in order to improve it exclusively for disabled heirs, whether they are descendants or ascendants (first part of section 2448). Section 48 of the CCC establishes that a disabled person is someone who suffers from a mental or physical disorder, either permanent or prolonged, who, in relation to his or her age and social environment, entails considerable disadvantages for his or her family, social, educational or professional integration. </p><p>Since the forced heirship regime is a public order regime, any provisions or structures used by the parties which conflict with the portions under the regime are null and void.</p><p>There are precedents in Argentine courts in which forced heirship claims have been admitted against trust assets when the legitimate portion of one of them was infringed. </p><p>A forced heir can be deprived of his or her legitimate portion if the decedent invokes in his or her will one of the statutory causes for disinheritance established in the Civil and Commercial Code (for example, the decedent invokes in his or her will that he or she was the victim of violence by his or her son). The <i>onus probandi </i>of the invoked disinheritance cause is in the charge of the other heirs.  </p>

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<p>Under the CCC, future spouses now have the possibility of opting between a shared/marital property regime or a separate property regime, by entering into marriage conventions (the "Conventions").  </p><p>Section 463 of the CCC establishes that the traditional shared/marital property regime will be applied in the event that no convention is made or if the convention does not set forth any provision regarding the property regime.</p><p>Conventions may be created for the purpose of the following (section 446, CCC):  </p><ul style="disc"><li value="1">designation and appraisal of the goods that each of the future spouses brings to the marriage;</li><li value="2">admission of debts;</li><li value="3">donations made between each other; and </li><li value="4">the option chosen taking into account the regimes contemplated in the CCC.  </li></ul><p>Section 448 of the CCC provides that, in order to be valid, the Conventions must be executed by Public Deed (<i>escritura pública</i>). In order for the conventions to be effective towards third parties, the marriage certificate must include a note in the margin specifying the regime chosen.</p><p>In the event that the spouses decide to change the regime, any amendment must also be made by Convention and by a public Deed, and the spouses must have been married for at least one year. If any creditors are affected by this change, they will have one year to object, starting from the date they became aware of the change.</p><p>When a marriage is terminated (due to death or divorce), the assets that qualify as shared/marital property are grouped together and divided and distributed equally between the spouses, after the applicable liabilities and claims of each spouse have been worked out.</p>

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<p>Traditionally, families used to make inheritance advances (gifts) to their successor in order to avoid court succession proceedings. With respect to tax matters, there were benefits in the use of certain DTTs, such as those made with Austria and Chile, which permitted, through the use of simple structures, the exemption of the property that was subject to personal assets tax as well as the exemption of income taxwith respect to the income generated by it. When both DTTs were denounced, different tax and estate planning structures emerged as alternatives for high net-worth individuals and families.  </p><p>Therefore, the tax impact of maintaining the assets in the individual estate led to a gradual change of trend in this respect, and wealthy families became more prone to plan through foreign fiduciary structures, supplementing them with holding companies, which allow them to keep their financial holdings as well as the assets that belong to the family business. </p><p>This trend is expected to increase, for the following reasons:</p><ul style="disc"><li value="1">high net-worth families have entered into the Tax Amnesty (Law 27.260), under which they declared the possession of national or foreign currency and other property located in the country and abroad. As a consequence, and as soon as they file their relevant tax returns, they will become aware of the new tax burden to which they are exposed (<i>Income and Personal Assets Tax</i>) and will seek tax planning alternatives to ease this burden.  </li><li value="2">rumours around the possibility that the Executive Branch will send a bill to the Congress to establish an <i>Inheritance/Estate Tax</i> at a federal level will encourage high net-worth families to analyse estate-planning alternatives. The efficiency of the structure will ultimately depend upon the terms of this upcoming law.  </li><li value="3">in line with the above, high net-worth individuals and families are likely to seek to avoid disclosing all assets recently declared under the Tax Amnesty in their relevant tax returns, bolstered by recent Argentine political history. In other words, high net-worth individuals and families will seek tax and estate planningbut mainly asset protection.  </li></ul><p>Even though there is no comprehensive tax regulation concerning foreign trusts (only Section 140 b) Income Tax Law), according to the Argentine tax administration and courts it is clear that family trusts are not subject to tax in Argentina, for neither the settlor nor the beneficiaries, as long as no distributions are made and provided that certain requirements are met.  </p><p>If structured correctly, revenues derived from the assets held in trust would not be subject to tax in the jurisdiction of the trustee, and the trustee becoming the legal owner of the assets means that neither personal asset tax nor income tax will be levied on the settlor for such assets and their revenues. Furthermore, planning through a trust structure could also be beneficial if an inheritance taxbill passes through Congress. As mentioned above, the efficiency of the structure will ultimately depend upon the terms of this upcoming law.</p><p>In this regard, the <i>“Eurnekian case” </i>showed the importance of following the right trust set-up, as it confirmed that the Argentine courts consider that the trust needs to receive no complaint from the Tax Administration, and to achieve the desired impact. This means that the settlor has to give up control and ownership of assets when handing them over to an independent trustee.  </p><p>Hence, the use of a trust – notwithstanding that the transfer in trust must be made by the settlor to a third party (trustee) – generally generates resistance among individuals in countries such as Argentina (relevant cultural factor), and may give rise to benefits concerning both taxes and successions.</p>
<p>Argentina recognises foreign trusts. Under Argentine law, the applicable law is the law of the place where the trust has been settled, providing that Argentine public order is not infringed (mainly, the forced heirship rules).</p>

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<p>Argentine law provides legal remedies for a forced heir making claims that the forced share that should be allocated to him or her has been adversely affected. In this sense, the affected party could file a collatio bonorumclaim regarding the Trust Fund.</p><p>This interpretation was extended by the courts in a unique and unprecedented case in Argentina where the collatio bonorumwas discussed in the case of a trust created under the laws of the United Kingdom (in the case, the two daughters from the first marriage of the decedent and the surviving divorced spouse filed a complaint against the other heirs – the children from a third marriage of the decedent – with respect to the collatio bonorum of the real estate located in London and received by them as beneficiaries of a trust created in the United Kingdom by their deceased father). The court resolved, regarding the collatio bonorum, that a trust created with a view to benefiting gratuitously a forced heir of the settlor might be deemed a gift to the heirs made before the death of the decedent, and so goes into the accounting of the estate, because its content and significance exceed that permitted under inheritance law.</p><p>Regarding matters of private international law, the court established that, even though the trust was governed by UK law, the succession was subject to Argentine law because that was the last address of the decedent. As a general principle in succession matters, the Argentine legal system provides that succession proceedings will be governed by the laws of the country in which the decedent’s address is located.</p><p>Furthermore, if the settlor received funds from the trust, any party with a legitimate interest could pursue a sham trust claim(a sham trust is the term used to refer to a trust that was set up with intentions other than those expressed in the deed, whereby the trustees had no intention of acting on the terms of the trust) in order for the irrevocable trust to be declared void ab initio. As a consequence, those assets would be treated as if they had never left the settlor's estate.  </p>

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<p>Unlike many other nations, obtaining citizenship in Argentina is relatively straightforward. The first step is to obtain a visa, which enables a person to live in the country for one year on a temporary residence permit. When the year has expired, the visacan be extended for an additional year. At the end of the second year, the visa can be extended again for another year. At the end of the third year, the <i>visa </i>can be extended once more, leading to<i> permanent residency</i>. At this point, an individual is legally entitled to reside in Argentina permanently. Two years after receiving permanent residency, an individual may apply for citizenship.</p><p>The children of an Argentine father or mother that were born abroad have the right to acquire Argentine nationality regardless of their age, even when the Argentine father or mother has passed away, and regardless of whether their parent is a native or an Argentine by option.  </p><p>Other relatives of Argentine citizens – such as spouses, grandchildren or siblings – cannot apply for Argentine nationality, despite some of them having the right to reside in Argentina.  </p><p>There is no requirement to give up (renounce) another nationality to acquire Argentine nationality by choice; losing the foreign nationality will be a matter of the foreign country in question.</p>

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<p>In general terms, minors are represented by the surviving parent. If no parent survives, the court designates a legal representative (curador) to handle all assets on the minor's behalf. The disposition of assets usually requires court approval. A minor can inherit and own assets through his or her legal representative.  </p>

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<p>Since the enactment of Law No 23,264 and pursuant to the American Convention on Human Rights (<i>Convención Americana sobre Derechos Humanos</i>), Argentine law does not make a distinction between legitimate and illegitimate children (children born out of wedlock), with all children having the same rights to inherit or be included in a class of beneficiaries. </p><p>In terms of adoption, Sections 594 to 637 of the CCC distinguish between simple, full and integrative adoption, with the distinction having a direct impact on the intestate inheritance rights of the adopted children, as follows:</p><ul style="disc"><li value="1"><b>Simple adoption (</b><b><i>adopción simple</i></b><b>)</b>: in the case of a simple adoption, the law grants the adopted child the same intestate inheritance rights as a biological child but it does not create any relationship between him or her and the adoptive family. However, the CCC provides the adopted child a right of representation in the succession of the ascendants of his or her adoptive parents, but not as forced heirs. Additionally, the descendants of the adopted person have a right of representation in the succession of the adoptive parents, but in this case as forced heirs.</li><li value="2"><b>Full adoption (</b><b><i>adopción plena</i></b><b>)</b>: in a full adoption, the relationship between the adopted child and his blood family is terminated, being replaced by a relationship with his adoptive family. This implies that the fully adopted child will have no intestate inheritance rights regarding his or her blood family, and that he or she will acquire in the adoptive family the same intestate inheritance rights as a biological child.</li><li value="3"><b>Integrative adoption (</b><b><i>adopción de integración</i></b>):the adopted child is the son/daughter of the spouse or cohabitee.  </li></ul>
<p>Argentine law recognises marriage between same-sex<i> couples</i>, so the same marital property regime applies in such cases. This has no special effect on the testator's will, due to the fact that they have the same inheritance rights as the spouses in a marriage. "Marriage" is defined as the union of a person to another of the same or opposite sex, in a consensual and contractual relationship recognised by law, and in which the consent is usually expressed in the presence of a public officer. Argentine law also recognises civil partnerships, which are legal unions or contracts between two people of the same sex, similar to a marriage.</p>
<p>The CCC recognises certain rights for domestic partners,provided they have been together for at least two years. Through the means of "cohabitation agreements" (<i>Pacto de Convivencia</i>), domestic partners will be able to regulate different aspects of their life together, such as economic aspects and other responsibilities. The CCC also provides protection for the family home and, if one partner should die, the survivor is granted the right of free housing in the home they shared, for a period of two years.  </p><p>Under Section 524 of the CCC, the domestic partner who suffers a glaring imbalance in his/her economic situation (as a result of the end of the cohabitation) may claim economic compensation before the court.  </p><p>The surviving domestic partner has no inheritance rights over the estate of the decedent.</p>

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