|Foundations – the Trust Alternative?|
Foundations have long existed in civil law countries where the concept of an Anglo-Saxon trust is unfamiliar. But as competition for a larger slice of the global wealth management cake has intensified in recent years, several, mainly offshore, common law jurisdictions have accommodated foundations laws into their own suites of offshore legislation in order to attract new money from a rapidly increasing population of wealthy individuals and families in emerging economies such as China, Russia, and in Latin America.
Globally, foundations come in all shapes and sizes and can be used for a wide variety of purposes. In the context of wealth management, the objective of a foundation is much the same as that of a trust – essentially protecting the family silver from the prying eyes of the ever-greedy onshore tax man or attack from another source. The manner in which a foundation is established and run, however, is quite distinct from a trust.Login to Read or Click Here for Membership First