A Foundation is an especial independent legal entity, without any shareholders or members and is usually established to reflect the goals and wishes of the founder, who can be a corporate entity or individual person. These wishes and goals are contained within Bye Laws, Articles of Association and the Foundation’s Deed of Incorporation. Foundations are generally established for a strictly fixed period of time and used for any commercial, charitable or family purposes.
Foundations are an extremely important component in case of structuring the ownership of corporate or family assets and are especially important where trusts are not recognized. Such structures are essentially similar to corporate entities but allow the protection and incessancy derived from the use of trusts.
Offshore foundations are generally used for:
- Private investments.
- Administration of the Founder’s assets.
- Regulation of succession.
- Shareholding participation.
- Business preservation.
- Minimization of tax inheritance.
- Holding properties or vehicle of assets.
- Secure the goals and wishes of the founder regarding the disposition of assets.
- Recurring payments to individually appointed beneficiaries and distribution of the funds to those beneficiaries, in cases of dissolution of the Foundation.
- Encouragement of family financial sustenance.
- Administration of payment to individuals for training, subsistence, education, clothing, and other help for the future generations.
Any of the above-mentioned uses and benefits can be derived from the foundation to meet the needs of its beneficiary or different purpose (philanthropic, charitable or any other private or public matters).
For more information or advices regarding offshore foundations, considering your specific needs, please contact our professional team.