Does Transferring Foreign Assets to Heirs through a Holding Company Resolve the Problem?

Inheritance with a Cross-Border Element

Prepared by: Constantinople

Consolidating assets under a holding company may simplify management; it does not automatically remove inheritance disputes. If property belongs to the company, who acquires its shares after death and how must be examined. Share transfer does not make foreign registrations and local rules unnecessary in every case. Management continuity and transfer of ownership are separate questions.

The applicable law is particularly important in Türkiye-connected matters. Article 20 of MÖHUK governs succession under the deceased’s national law and applies Turkish law to real estate in Türkiye. Creating a foreign trust or foundation does not establish a shield pre-emptively defeating every reserved-share, matrimonial property, tax or creditor claim.

If considering a structure in Malta, a trust in Singapore or a holding company elsewhere, first explain the actual purpose: managing fragmentation of shares, providing for a minor heir or continuing business operations. The constitutive instrument, beneficiary rights, amendment powers and post-death management mechanism are assessed separately against that purpose.

We start with family and ownership charts, countries where assets are located, wills, constitutive documents and debts. Procedures in different countries concerning the same asset must not conflict. We identify the Turkish connection and documentation needs; validity and tax effects of the foreign structure must be separately verified with an authorised specialist in that country. No undocumented inheritance guarantee or absolute protection against divorce and insolvency can be promised.