FOUNDATIONS SERVICES
STM offers foundations from a number of jurisdictions both within and outside the EU for those clients who prefer this structure to the traditional Anglo Saxon trust vehicle, particularly those from Civil Law rather than Common Law jurisdictions.
WHAT IS A FOUNDATION?
A foundation is a combination of a company and a trust. It has a separate legal personality and is able to hold its own assets, to contract with third parties, and to sue and be sued in its own name and capacity. It does not have shareholders and, since it is a registered entity, it offers the certainty of a certificate of incorporation the same as a company. Also, there is no ultra vires doctrine and a foundation cannot be deemed to be a sham.
This product offers clients and advisers an alternative to using trust structures to hold and manage their assets. A foundation may not however carry on a trade, and for this purpose a limited liability company is desirable in addition to the foundation.
COMMON REASONS FOR THE ESTABLISHMENT OF A FOUNDATION INCLUDE:
Charitable or philanthropic purposes
Retaining and preserving specific assets
Succession planning to enable family assets and businesses to benefit successive generations
Holding an asset, such as a company, to carry out a specific purpose
To avoid the disclosure of information to beneficiaries, to which they would be entitled if the assets were held in a trust
To avoid chain indemnities as would be the case for a trust changing trusteeship
WHAT ARE THE MAIN ATTRACTIONS?
Foundations have several benefits:
Can be constructed in a way that affords clients greater control over assets, unlike traditional discretionary trusts
Simplify and enhance the transparency of wealth-holding structures
Are more widely known and accepted by those clients from civil-law jurisdictions where the concept of trusts is not well recognised or accepted.
KEY CONTACTS
and how they can help you.
