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Offshore foundation helps to protect asset from high tax
Offshore Foundations, Private Interest Foundation
A foundation is a legal entity, with no members or shareholders. A foundation is established to reflect the wishes and requirements of the Founder, who may be an individual or a corporate entity. A foundation is a legal entity separate from its creators or founders and it can own assets or participate in legal proceedings in its own name. It is a unique form of legal entity, which acts like a trust and operates like a company. It is incorporated like a company, and it is managed by a board of councilors. Foundation can not engage in economic business activities, they are not allowed to generate income through sales of services, but can earn passive income, from royalties, stocks, real estate, and investments. Foundations don't have owners, they have founders, council members, beneficiaries, and protectors instead that perform various duties in the foundation.
The Founder`s wishes and requirements are found in the Foundation`s Deed of Incorporation, Articles of Association and By Laws. Foundations are very important when structuring the ownership of family and corporate assets.
Practical Uses of Offshore Foundations:
- Substitute of the testament or will
- Provide for the educatioin, housing, maintenance or profit sharing of family members
- Protect family business and provide continuity to future generations
- Protect minors, disable personas and persons unable to administer their assets
- Administer payments, distribution of assets to family members
- Protect assets from high taxes, claims by creditors, political instability or forced heirships
- Operate bank accounts worldwide
Assets that can be help by an Offshore Foundation:
- Bank deposits
- Investment portfolios
- Real and intellectual property
- Life assurance policies
- Shares and stocks in quoted and private companies
