Definition of a Foundation
A Foundation is an entity that is different from any other legal entity known in Anglo-Saxon Law. It is not the legal personification of a person or group of persons (as with a corporation), rather it is a legal entity that does not have owners (shareholders, participants, or partners). A foundation traditionally has a specific purpose for the benefit of a certain group of individuals or charity.
When a Foundation is set up, an entity is created that stands on its own. The assets will be owned by the Foundation, and nobody can lay claim on them anymore. They are safe.
How to setup a Foundation
When you set up your foundation, you will be the one who decides how the foundation will manage your assets. This is the perfect tool for you to decide who will be the future beneficiaries of
your hard-earned fortune.
A Foundation offers clear advantages for international tax and estate planning, providing the ultimate in privacy and protection to the beneficiaries. The foundation can have a founder, protector, beneficiary and council members. Since there are no owners of a Foundation, day to day business is taken care of by the foundation council.
Usually, a “Letter of Wishes” may be written by the founder to specify how the foundation’s assets should be handled before and after his death. A protector can be assigned to execute these wishes.
What can a Foundation achieve?
A Foundation can provide
Asset Protection by owning the shares of subsidiary corporations, thus separating legal ownership from usufruct rights.
They can also be used for
Estate Planning, where the founder transfers title to his assets to the foundation, after which the foundation transfers his wealth according to his wishes.
Foundation Formation can be particularly useful if you have assets in different places, e.g. property in Dubai, shares on the NYSE, a holding company in Hong Kong.
Imagine the trouble your heirs will have to go through to get hold of your assets if they have to deal with probate procedures in a lot of different countries!
Freemont Offers Foundation Formations in the following jurisdictions:
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Panama Foundation Formation
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Curacao (Stichting Particulier Fonds, SPF) Foundation Formation
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Belize Foundation Formation
Furthermore Freemont can provide you with the full set of services in administrating and maintaining your Foundation, such as Bank account opening and administration, IFRS reporting, accounting, HR management and many more.
Contact us to learn more.