What is a foundation
A foundation is a separate legal entity that is used for estate planning and asset protection purposes. The purpose of a foundation is to provide you with the peace of mind needed to ensure that your assets are protected to the highest of standards. It is important in protecting a family’s assets, and enables a range of tangible and intangible assets to be protected from strict governmental tax laws and regimes.
If you are interested in establishing a foundation and would like to learn more, please view our Offshore Foundations services page.
What is a foundation explained
Like a trust, a foundation is a separate legal entity that is established for the purpose of protecting ones assets. It is usually established in jurisdictions where trusts do not exist or are not recognized. There are a number of countries across the globe that offer foundation services, and they are popular tools when structuring the ownership of family and corporate assets.
A foundation can be created by either an individual or a corporation. Its primary role is to protect the family or corporate assets in a legally binding entity and is structured based upon the desires of the individual or corporation. All foundations have a Charter and Regulations document, which stipulates the specific wishes of the founder – who is the creator of the entity. Contained within this document is the desired length of the foundation, which can be formulated for a fixed or indefinite period of time.
To set up a foundation, it is necessary to have a founder, council members, protector and beneficiaries. The founder is the individual or corporate entity who has chosen to set up the entity. The council members are responsible for managing and administering the entity in compliance with the founder’s wishes, whilst the protector is responsible for supervising the council member’s activity and ensuring it is compliant with the founder’s wishes.
Foundations ensure the protection and continuity of one’s assets. These can include bank deposits, real and intellectual property and investment portfolios, amongst many other forms of wealth.
Establishing a foundation has a number of worthwhile benefits, including the protection of your assets from political, economic and family uncertainty. In addition, it is a form of inheritance tax planning that avoids the legal complications involved in heirship rules and intellectual property, amongst other complicated legal regulations in place in many jurisdictions.
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