Foundations and trusts are a secure form of asset ownership. Nonetheless they are misunderstood and some clients are frightened by the fact that property is "transferred" to third parties.
What is the main difference between trusts and foundations? When comparing offshore trusts vs. foundations we first should point out that a Trust is a private contract, while a Foundation is a legal entity of its own.
Simply put, trusts allow you to separate legal ownership (the name on the certificate) from beneficial ownership (the right to enjoy the asset) in such a way that the rights of all parties are protected. The law recognises both forms of ownership.
And how about the benefits of an offshore foundation? Incorporation of a company gives legal personality to a group of people. Incorporation of a Foundation, on the other hand, gives legal personality to certain assets - meaning the assets in question have no owners, only managers. The assets become a legal entity in their own right.
At the same time, trusts and foundations solve a wide range of issues, and the first of them is asset protection. In the case of a correct and timely transfer of property to a trust (fund), it ceases to belong to the person donating it. In this case, it is impossible to take it away even through the courts.
Trusts and foundations are commonly used for inheritance transfer, property structuring, investment, and philanthropy. They are used by the biggest family offices. In today's world, it is reasonable to use both options and even a hybrid trust and foundation structure using offshore companies or LLCs. The Nevis Multi-Form Foundation is an example of such a hybrid structure, and is very popular with knowledgeable lawyers.
InternationalWealth experts can help register funds and trusts based on your goals and objectives around the world. Sign up for a free initial consultation to find out more: info@offshore-pro.info.
In this section, you will learn about the peculiarities of trusts and foundations in different countries, and how to use trusts and foundations for different purposes. At the end of the page you will find the materials most demanded by readers.
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