This technical briefing paper summarises the main
characteristics of an Isle of Man foundation under the Foundations
Act 2011. This paper relates to the Act; the rules of the
foundation may make different or additional provision in most
areas.
It is likely that foundations will be used mainly for private
wealth and charitable purposes, although there is no reason why
they could not be used in a commercial context also. A foundation
can be the equivalent of a family trust, used to benefit successive
generations of family members; or as a charitable foundation
operating in a similar way to a charitable trust. Or a foundation
could be the equivalent of a purpose trust and could have as its
objects the ownership of assets. A foundation might for example be
preferred instead of a trust (a) to own assets which are wasting or
risky (b) to hold "orphan" assets, for example the shares
in an SPV in a financing structure or in a private trust company or
(c) where the client is
