Trust and Foundations
Trust, foundations and other special purpose vehicles are key components of structuring personal wealth. They can also be utilised in the corporate world in executive employee schemes, off-balance sheet financing arrangements and international tax efficient holding structures.
Recommended structures include:
- irrevocable discretionary trusts (a common law concept)
- reserved powers trusts (in which the power of investment can be retained by the client)
- private trust companies (formed specifically to be appointed as corporate trustee of a trust, which can allow clients & family members to be involved in decision making)
- purpose trusts (including non-charitable trusts often used to hold family businesses and private company shares)
- foundations (defined under civil law)
Fiduciary structures provide a host of benefits including estate, succession and inheritance planning, asset protection, tax efficiency, risk mitigation, philanthropy, asset consolidation and confidentiality.
Trust arrangements can be used as family governance vehicles and are also established to provide entrepreneurs with business continuity planning in which management succession and exit strategies can be accommodated.