Foundation Establishment

What is a foundation? Most important, a foundation is a separate legal body with its own claim to assets. The foundation provides the financial protection the founder requires while maintaining its business legal personality. This is where its advantage lies.

Asset ownership is not given to a trustee. The foundation is instead controlled by regulations outlined in its charter and bylaws. A founder-selected council is in charge of them.

 

The client establishes the foundation and becomes its first president, with his wife and kids as its main beneficiaries. The founder can then join at least one other natural person or legal entity on the council of members, which functions as a board of directors. A guardian, who can be present but is not required, acts as a check and balance on the council's decisions and defends the founder's desires.

• Asset protection. Foundations separate people from the ownership of assets since they are separate legal entities. If the founder encounters financial troubles, this shields them from creditors and governmental agencies.

• Employee schemes. Employee pension and retirement plans, as well as stock incentive plans, can be managed by foundations.

• Tax-efficient holdings. Foundations are able to store certain assets and financial gains. Since they are exempt from both personal and corporation taxes, this is tax-efficient.

• Philanthropy. To guarantee that assets are used for charitable causes, founders might create bylaws.

Wealth structuring and inter-generational legacy planning. The distribution of wealth among family members can be outlined in bylaws.