Benefits of a private foundation
A private foundation is a legal entity that is set up for the benefit of future generations. It is usually set up by family members as a way to protect wealthy assets for the benefit of children, grandchildren, other family members or even charitable causes (known as charitable foundations). Private foundations are particularly common in the USA and many people choose to set up a private foundation to protect their assets from creditors.
For more information on private foundations, or to find out how DeltaQuest can assist you with your asset protection needs, please view our Offshore Foundations services page.
Private foundation explained
An offshore foundation is usually set up as an alternative to an offshore trust. It is established as a form of asset protection and is an excellent way to defer taxes. A private foundation generally offers numerous tax advantages, depending on the jurisdiction that it is set up in, it is possible for the founder to taken an immediate tax deduction for assets contributed to the foundation. Each jurisdiction features its own structures and purposes; however there are some common structural similarities that can be observed.
A private foundation can be a very rewarding and advantageous legal entity. In addition to tax advantages, a private foundation is also a way to establish a family legacy of giving to others. Once set up, a private foundation can be an excellent way for a family to benefit others for many generations to come.
Foundations also allow the founder to have ultimate control over your assets. A private foundation can be controlled by members of one family or a small group of individuals. The founder of the foundation can pursue his or her own personal goals by managing the assets. In addition, a founder’s family can also have administrative control over the private foundation, and therefore take full advantage of the foundation structure.
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