Foundations & Trusts Setup in the UAE
In today's world, where wealth preservation and succession planning are critical, trusts and foundations serve as essential tools for safeguarding assets and ensuring they are managed and transferred according to the owner's wishes.
These legal structures offer stability, control, and flexibility, making them highly attractive to high-net-worth individuals, families, and businesses alike.
Although both trusts and foundations are designed to efficiently protect and manage wealth, they differ in structure and governance. A trust is a legal arrangement in which a settlor transfers assets to a trustee, who manages these assets on behalf of beneficiaries, which may include individuals, organizations, or other entities.
Trusts are highly flexible, allowing the settlor to establish customized terms for asset management and distribution. This adaptability makes trusts particularly useful for achieving a variety of personal, financial, or charitable goals, as well as providing long-term solutions for wealth management, asset protection, and succession planning.
A foundation, by contrast, is an independent legal entity with its legal personality, often created for a specific purpose, such as philanthropy or family wealth management.
Unlike trusts, foundations are self-governing, with the foundation itself holding and managing its assets under the direction of a board or appointed managers.
This structure allows for greater control over the administration and distribution of assets, making foundations an excellent option for individuals who want continuous involvement in how their wealth is handled.
Both trusts and foundations offer substantial benefits in asset protection, tax efficiency, and long-term financial security. With expert guidance, these structures can be tailored to meet specific objectives and provide a seamless way to manage and preserve wealth across generations.