Foundations are most likely to be used for ‘holding’ purposes and are generally favored for confidentiality and asset protection. Some Foundations act like a trust but operate like a company. Whereby assets are only settled into a trust by the Settlor a Foundation can purchase assets and enter into agreements.
There are different types of foundations available. Chesterfield has a diverse and experienced team of skilled administrators with extensive knowledge of each of these. These generally fall into three groups ‘a Private Foundation’, ‘a Charitable Foundation’ and ‘a Purpose Foundation’ or a mix of the three. The Rules depend on the jurisdiction the foundation is established
There are three main aspects of a Foundation;
The Founder:- typically submits the initial instrument, it is possible for a third party to act for the Founder in certain cases. If assets are transferred to the Foundation from the Founder these are then considered the property of the Foundation and are no longer the property of the Founder. The assets of the Foundation are considered separate from the personal assets of the Founder. This means that the assets may not be liable for the personal obligations of the Founder and may only be used as security obligations for the Foundation.
The Foundation Council – they usually manage the assets of the Foundation. Their purpose is to fulfill the objectives and purposes of the foundation. It can be a requirement for some members of the council to have restrictions such as required residency of the Foundation location.
Entitlement – often within a foundation an individual may not have any legal rights to its assets. The way in which assets are utilized or distributed is often set out by the founder and recorded in the initial foundation documents.
It is often feasible to custom design a Foundation for a particular structure and a number of advancements in the design of Foundations have evolved over the years to make them a flexible component in a structure provided the correct jurisdiction is chosen.
Chesterfield provides officers who control the majority of client foundations which we manage. We have the ability to run all types of foundation and our foundation council service is second to none.
Chesterfield supply various accountancy services tailored to the needs of our clients and regulatory requirements. Our accounting department can provide many services including bookkeeping and production of year end accounts as well as any tax returns which may be required.
We have excellent relationships with a number of banks worldwide and can set up various facilities, please see our banking page for more details. We also have extensive property expertise which is detailed in our property pages.