Offshore foundations are regarded as a highly effective asset protection solution. They are legal entities that provide excellent tax planning opportunities, while offering high levels of privacy from creditors and other third parties. An offshore foundation is the corporate alternative to an offshore trust.
Offshore foundation benefits explained
An offshore foundation refers to a legal entity with no members or shareholders, which is commonly formed to reflect the wishes of an individual or company. An offshore foundation can be set up for an indefinite or fixed period of time and can be utilized for family, commercial or charitable causes.
In order to be legal, an offshore foundation necessitates the involvement of four members; the founder, the beneficiary, the council members and the protector.
- A founder is the individual or company who sets up the offshore foundation.
- A beneficiary is the individual who will eventually benefit from the activity of the foundation.
- The council members are in charge of putting into practice and overseeing the foundation’s operations.
- A protector is responsible for ensuring that the council members are following the exact orders as stipulated by the founder.
Setting up an offshore foundation in a suitable jurisdiction is a relatively simple procedure. It is considered as one of the best techniques to maintain financial confidentiality and privacy against creditor claims and other parties. This is due to the fact that once the foundation is established, it cannot be traced in any public records or registries.