Trust And Foundations
If you are looking to secure assets for your business, your estate, or someone else, it’s important to understand your options. Often, the two choices that arise are a trust and a foundation, both of which secure assets and wealth for future use and distribution.
However, the choices that you make will very much depend on your own unique situation.
Our Services
At Papilio Services, we are experienced at setting up trusts and foundations and can assist with the administration and legal requirements needed to maintain them. We are also able to act as trustees of trusts or administrators of foundations in a professional manner with the best interests of the beneficiaries, founders, and purpose of that vehicle.
But What's The Difference?
TRUSTS
The term ‘trust’ is defined as the relationship which exists when a person (the trustee) holds assets on behalf of another person or group of people (the beneficiaries). The trust concept has existed in common law jurisdictions for many years and, for most, the concept appeals for the reasons trusts were initially created: asset protection, succession and estate planning. One of the key advantages of a trust is that by separating assets from an individual’s personal wealth, it provides a protection from personal debts and other threats and can sometimes provide tax benefits, depending on the local laws. A trustee is a person or a legal body who is appointed to act as custodian for the assets held within a trust and is responsible for managing those assets for the benefit of its beneficiaries as laid out by the terms of the trust. The terms are usually governed by the trust deed or provided by law.
FOUNDATIONS
A foundation is an incorporated legal entity used to hold assets and therefore has several uses in wealth structuring and succession planning. Although neither a company nor a trust, it does have similar features to both. As there are no shareholders or ‘owners’ and there is no requirement to have beneficiaries, the use of a foundation separates underlying assets from an individual’s personal wealth falling outside his/her estate for inheritance tax purposes. A foundation can equally be used for charitable or non-charitable purposes, such as succession planning for wealthy families to divest assets which the foundation can hold for the benefit of its beneficiaries. An administrator of a foundation is a person or a legal body appointed to administer the foundation in accordance with its purpose and objects usually set out in the charter of the foundation and as provided by law.
Find Out More About The Services We Provide In Our Key Strategic Locations
Papilio Services in Malta
Papilio Services in Malta
Papilio Services in Netherlands
Papilio Services in Netherlands
Papilio Services in Rest of the World
Papilio Services in Rest of the World
Get In Touch With Us
If you are interested in having an initial consultation to discuss your business requirements, contact us using the form below and we will reach out to schedule a call as soon as possible. If you require more technical information, we can arrange for a local expert to be on the call.
