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Practical uses of a foundation

As many people use this unprecedented amount of time at home to reflect on estate and succession planning we look at one of the successful tools used to help achieve personal goals.
1st May, 2020

ILS World works with many international clients who choose to use foundations for wealth planning and philanthropy.

The practical uses of a foundation can include:
• Charitable and philanthropic purposes
• Estate and succession planning
• Wealth preservation
• Asset protection
• Consolidation of worldwide assets
• Centralised reporting
• Inheritance tax planning
• Avoidance of forced heirship rules
• Privacy
• Separation of voting and economic benefit
• Maintenance of corporate control
• Employee share option schemes.

A foundation is an incorporated, self-owning legal entity, which although has much in common with limited companies and trusts, possess its own unique features. They are regarded as one of the most robust vehicles for holding private, commercial and charitable assets and eventually delivering them to an exact intended destination.

Historically a foundation was mainly established in civil law jurisdictions as an alternative to a common law trusts but now there are a limited number of common law jurisdictions offering them. Delivering a high degree of confidentiality foundations offer the founder and beneficiaries a high degree of protection against creditors as well as providing certainty in forced heirship issues.

The ILS World private client team is experienced in establishing and administering foundations in a number of jurisdictions and our services include planning and structuring, preparing the foundation charter, providing council members, where appropriate obtaining charitable status, acting as registered agent, establishing bank accounts, administration and accounting. We work hard to create long-term relationships and provide the highest level of service and we have been told that we are approachable, flexible and pragmatic. We offer regular face-to-face meetings as required and provide direct contact with a senior member of the team.

For further information please contact enquiries@ils-world.com

Please note: ILS World does not offer tax advice and would therefore recommend you obtain your own tax advice. If you require an introduction to a tax adviser we would be happy to assist.