Foundations

The Modern Vehicle for Asset Protection and Legacy Planning

A Foundation is a sophisticated wealth structuring vehicle that combines the benefits of a trust and a company. Registered as a distinct legal entity, a Foundation can hold assets, conduct transactions, and enter into contracts in its own name, offering a robust and flexible solution for high-net-worth individuals and families.

Key Features of a Foundation:

A Foundation has a unique structure:

The Founder: The person who establishes the Foundation and endows it with its initial assets.
The Council: Similar to a board of directors, the Council is responsible for managing the Foundation's assets and ensuring it adheres to its charter and by-laws.
The Guardian (Optional but recommended): An overseer who ensures the Council acts in accordance with the Founder's wishes and in the best interests of the Beneficiaries.
Beneficiaries: The individuals or class of persons who benefit from the Foundation.

Foundations vs. Trusts:

Key Differences While both are used for wealth planning, the key difference is that a Foundation has its own separate legal personality, whereas a Trust is a legal relationship between a settlor and trustee. This gives a Foundation more corporate-like capabilities and a clearer governance structure, which many founders prefer.

Why Use a Foundation?

Asset Protection: By transferring assets to the Foundation, they are legally separated from the Founder, offering strong protection from potential claims.
Succession and Legacy Planning: A Foundation provides a clear, enduring structure to manage and distribute family wealth across generations, ensuring the Founder's vision is maintained.
Holding Complex Assets: Its corporate nature makes it ideal for holding diverse asset classes, such as operating businesses, private equity, and real estate portfolios.
Philanthropy: Foundations are a popular vehicle for charitable giving, providing a structured way to manage and distribute funds to philanthropic causes.

DIFC and ADGM: Premier Foundation Jurisdictions

Both the DIFC and ADGM have modern Foundation regulations based on international best practices. A DIFC Foundation, for example, can be established for a fee of just $350.

Expert Guidance on Foundation Structuring

We provide expert advice on whether a Foundation is the right vehicle for your needs. Our services include advising on the optimal jurisdiction (DIFC or ADGM), drafting the Foundation Charter and By-Laws, and managing the entire registration process.