FOUNDATIONS

A Foundation is a unique form of legal entity that shares the characteristics of both a trust and a company. It is suited to many civil law jurisdictions where there is no recognition of Common Law and the traditional trust structure. An offshore Foundation offers a wide variety of structuring options, making them flexible and highly adaptable. A Foundation can exist in perpetuity, which can provide greater control for the Founder, regarding the management of the assets.

Clients consider Foundations for a number of reasons:

Asset Protection

By placing highly prized assets into a Foundation, they will fall outside the client’s estate and outside the reach of creditors, judgements, malpractice and divorce, thus making the assets less vulnerable to break-up.

Inheritance Planning

A Foundation can be established to benefit successive generations of family members. It will allow the Foundation’s Founder to benefit children, grandchildren and other family members in a controlled way. This can be achieved both during their life and long after their death.

Confidentiality

A Foundation’s instrument is a matter of public record. However, any private matters that the founder wishes to provide for can be added to the Foundation’s rules. An Isle of Man Foundation also offers the Founder added comfort, in that the Rules may specifically deny the provision of any information to the beneficiaries and so the Council may operate for the benefit of the Foundation, without undue influence from the beneficiaries.

Charities

Charitable Foundations are permitted for charitable objects and are already being widely used to benefit a wide range of charities. The charitable purpose is set out in the Foundation’s instrument, and once executed the Foundation cannot then alter those purposes.  Mixed charitable and non-charitable purposes are permitted.

Isle of Man Foundations

We specialise in Isle of Man Foundations that were first introduced in 2011. A Foundation is a separate legal personality, so liabilities of the Foundation do not attach to the Foundation members. The Isle of Man Foundation does not require the Foundation Council to comprise of local licensed individuals. A clear advantage of the Isle of Man Foundation is that the Founder can be a member of the Foundation Council and also the Enforcer and, therefore, can retain an element of “control” over the Foundations’ assets and activities.

Why Choose KHT?

  • Clients at the centre of everything we do
  • Wealth of experience, understanding and technical knowledge
  • We nurture long term relations with clients and advisers
  • Collective strength and expertise of the wider Knox group of companies
Voirrey-Collister

Speak to our Expert

Voirrey Collister
Head of Private Clients & Operations/Company Secretary

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