Natalia Demina has helped RIA Novosti consider the issues around anonymously owning property

Natalia Demina - Partner

News agency RIA Novosti as part of its property supplement has published an article on the mechanism which enable owners of flats and homes to conceal their names. One of the experts quoted in the article was Natalia Demina, Senior Associate and Head of the Private Wealth Practice at Maxima Legal.

According to Natalia the most common routes to conceal the ultimate ownership of property is through the use of offshore companies or third parties, such as partners, friends or relatives. In the case of the latter variant, should a third party pass away it is possible that legal title to the assets will be transferred to their inheritors, even in cases with a will providing to the contrary.

A more successful method put forward by Natalia is the use of alternative instruments in foreign jurisdictions: trusts, or so-called Foundations.

“The transfer of ownership from the initial owner of property to a manager provides protection to the assets from claims, even if the property is found, which is very difficult”, emphasised Natalia.

Natalia also drew attention to the trend to “de-offshorise”; on the one hand, there are changes to transnational legislation, including the introduction of the automatic exchange of financial information between countries as part of the OECD, and on the other hand, individuals voluntarily disclosing details of their assets overseas as part of the second wave of amnesty of capital. “Owners may not feel so secure in offshore jurisdictions as before and feel that hidden assets may be vulnerable and are prepared to make the first move, as the risks may be too uncertain”, suggests Natalia.

To read the full text of the article, please see the RIA Novosti website.