Trusts and Foundations
Historically, high net worth individuals from Civil Law countries have been more familiar with the concept of foundations while trusts have more generally been used in Common Law countries. This difference is now becoming increasingly blurred with the choice between a trust or a foundation being due to the specific circumstances rather than being based on the country of a particular client.
Trusts and foundations have generally been established in low tax jurisdictions to help mitigate tax liabilities and to assist with the flow of family wealth across the generations.
Dixcart provides expertise in relation to the formation and management of trusts and foundations. In order to be effective it is extremely important that trusts and foundations are organised and managed by professionals.
Uses of Trusts and Foundations
Trusts and foundations are used for a wide variety of reasons, as detailed below:
- Asset protection.
- Circumvention of forced heirship laws.
- Continuity on death.
- Favourable tax treatment.
- Preservation of wealth and selective distribution of assets.