Offering more flexibility than a Trust, Private Foundations are
gaining in popularity due to their lower costs, fewer regulations,
tax benefits and greater control. But which jurisdiction is
best?
Many TMF Group clients looking for a vehicle to hold assets
choose the Trust, and it's especially popular in Anglo-Saxon,
common law jurisdictions. However Private Foundations, as used in
civil law jurisdictions, have some big advantages, and Anglo-Saxon
jurisdictions – such as Jersey, Guernsey and Cayman –
have enacted laws in recent years to be able to offer them as a
solution for asset holding or charitable and philanthropic
activities.
The advantages
Unlike the Trust, the Foundation is a legal entity and it has a
director, who can often be foreign. The liability for a trustee is
often much higher than for that of a director of a Foundation,
because the Foundation is itself liable for its affairs. If
you're set on the greater flexibility, control and tax
