Why open a foundation
A foundation is an advantageous asset protection arrangement if you have a number of assets which require extra security from external creditor claims. These assets can range from tangible and intangible property, including real estate, intellectual property and life assurance policies. The main purpose of a foundation is to act as a form of asset protection.
DeltaQuest offer a range of services related to the formation of a trust or foundation. To learn more, please view our Offshore Foundations services page.
Opening a foundation
There are numerous reasons why individuals or companies choose to open a foundation. A foundation provides additional protection for one’s assets. Whether for charitable, personal or commercial use, the formation of the foundation will act as a strong security barrier for your valuable assets.
The primary reasons for establishing a foundation are the considerable tax benefits granted upon it. Most offshore foundations offer zero taxation fees on the assets and income of the foundation, dependent on the jurisdiction in which the foundation is established. This ensures that one’s wealth is fully protected from complex legal sanctions that often result in the relinquishment of assets under circumstances such as death.
In addition to the above, many offshore jurisdictions offer attractive foundation packages that comply with the specific needs of the founder. This can include complete privacy from public registry as well as the guaranteed protection of your assets during wealth transfer and estate planning. In addition, upon the death of an individual, the assets are protected from legal limitations.
Another reason to open a foundation is to consolidate all of your wealth into one location. This will minimize confusion, particularly in relation to taxes, and act as a strong preservation of wealth during economic or political uncertainty.
In order to set up a foundation, it must be comprised of three basic components:
Founder: The individual or company who gifts assets to the foundation
Foundation Council: The officers who manage the foundation
Beneficiaries: The individual or institution who benefits from the foundation assets
Print This Post
