Trust vs Foundation

Private or family foundations are very similar to trusts. They combine the advantages of the trust with the concept of incorporated entity. 

Once set up, the foundation acquires the status of a legal entity and becomes the owner of the assets transferred to it for a particular purpose. Reasons to set up a private foundation can be very similar to those of setting-up a trust, namely asset protection, succession planning, preservation of ownership and family wealth continuity. 

Another well-known use of the foundation is philanthropy or a combination of ownership preservation with philanthropic use of foundation assets (for example, with private art collections used and exploited for public purposes). Foundation is very flexible and can serve multiple purposes, which makes it an advisable structure for protecting wealth. 

MP Part will advise on the advantages and limitations of the foundation and assist the clients in making an informed decision as to the choice between the trust and foundation. We will further assist in setting the foundation and drafting the foundation regulations customized for the family’s purposes.