Both Foundation and Trust are usually used by HNWI for the purposed of asset protection, settling the succession, asset preservation for next generation, safeguard a corporate, real estate portfolio, securing the economic future of family members charitable purposes etc.
Foundation VS Trust
A trust is a contractual relationship between the trustee and the donor under the Trust Deed. This document is private and confidential. Donor’s assets are assigned to the Trustee, the Trustee then holds the assets and manage them for the benefit of the trust’s beneficiaries. Distributions to beneficiaries should be made subject to conditions and rules under the Trust Deed.
A foundation can be considered as an independent and perpetual legal entity which operate by itself. The foundation has neither members nor an owner and offers utmost discretion for operation due to it’s non-public nature. The foundation is administered by the foundation board consisting of at least 2 members, the board exercises the founder’s wishes according to the articles and the by-laws.
Offshore
Family Foundation and Trust
Liechtenstein Foundation
BVI
Trust
Seychelles
International Trust
The Principality of Liechtenstein is situated at the centre of Europe adjacent to Switzerland and Austria. It is a constitutional monarchy established on democratic parliamentary principles and a member of European Economic Area (EEA). Swiss Franc (CHF) is their official currency. Liechtenstein has a strong and comprehensive banking infrastructure, legal framework and privacy protection. It is a stable and reliable international well known financial centre particularly in wealth management, asset protection, family and estate planning.
British Virgin Islands (BVI) is one of a popular international financial centre, it used to be a British colony for more than 300 years before independent. English is their official language. Their legal system is largely based on common law and partly with statutory law. Tax friendly environment, privacy protection, time efficiency in formation makes BVI trust competitive amongst other jurisdiction’s trusts.
Republic of Seychelles is located in the Indian Ocean, which was independent from British administration in 1976. Their official languages are English, French and Seychellois Creole, however, English remains the main language of the government and business. Seychelles is one of the well-known financial hubs offering cost effective opportunities for tax minimization, financial planning, succession planning and financial privacy. Those are essential consideration before setting up a trust.