Read on for important facts on offshore foundations which are ideal for holding property for the benefit of someone or a purpose. Find out the foundation’s uses, purpose and advantages. To select an offshore foundation in any of our jurisdictions, visit the specific page.
Foundations are structures to which legal ownership of property (money, shares, gift, land or encumbrance) is transferred.
They are hybrid in nature, containing vital features of the corporation (legal personality) and the trust (created for a purpose or benefit). As such, foundations are particularly useful as asset management and tax planning tools but in fact are multi-purpose.
Beneficiary or Purpose
Guardian or Protector
Establishing an offshore foundation essentially means wanting to have personal or business affairs governed under the statutes of a foreign country; ie., not the founder’s country of domicile.
In so doing, founders consent to have the foundation established, regulated and vested with certain rights, interests and features by the governing statute of foundations (offshore/international) of that territory.
One of the main advantages of going offshore to set up a foundation involves the creation of a hedge which guards the foundation and its property from being voided, invalidated or made defective in any manner by reference to the law of a foreign jurisdiction.
Such a strategy allows for conveying property, assigning shares or bequeathing gifts discreetly under tax-sheltered conditions.
Further uses which flow from offshore foundations include:
Any of the above-mentioned benefits/uses can be derived from an offshore foundation in furthering the interests of its beneficiary or purpose (charitable, philanthropic, or any other lawful public or private subject-matter).
For advice on an asset protection structure based on your specific needs, please contact us.