Trusts have been around for a long time. Their use in the
context of succession and wealth planning as well as philanthropy
is well established. Foundations, on the other hand, are relatively
new (certainly to common law jurisdictions such as Jersey) and as a
result there are fewer of them. However, they are being
increasingly used as structures for succession planning and
philanthropy. The question often asked is: which should I use? Is
one preferable to the other? This article takes a brief look at how
trusts and foundations differ and the circumstances in which one
might be used instead of the other.
Trusts In General
Trusts are a familiar concept, but it is worth going back to
basics briefly. A trust is formed when the legal owner of assets
(the settlor) transfers legal ownership of those assets (the trust
property) to individuals or a corporation (the trustee), typically
for the benefit of certain persons (the beneficiaries). Once a
trust is established, the
