Dubai Foundation / Trust - Asset Protection & Succession Planning - PART 1

DIFC Foundation Series

What is Foundation and why people set up Foundation in Dubai or Abu Dhabi ?

The Foundation is set up in Dubai to provide a common law substitute for trusts in financial planning and structuring purposes. Like trusts, foundations can be used for a number of purposes such as asset protection, succession and tax planning, asset management, corporate structuring and public interest foundations that serve multiple generations.

Benefits for setting up a Foundation :-

Asset Protection -

Governments, creditors, and/or other family members who might otherwise have claims against the family can easily access assets kept under personal names. However, a Foundation’s assets are legally separate from the Founder, and hence not readily accessible in case of claims against the Founder.

Privacy -

The Founders and Beneficiaries of a DIFC Foundation are private and this helps in managing assets more discreetly. Names of the Founders do not appear on official docuements such as land registries, title deeds and company registers, and this minimises the risk of potential claims from related or unrelated third-parties.

Tax Planning -

Large families have members with assets in multiple jurisdictions and subject to local tax laws and inheritance taxes. Effective structuring can be achieved using Foundations to facilitate smooth transfer of generational wealth and minimise tax exposures.

Succession Planning -

A foundation gives the Founder the ability to specify their preferences for what happens to their assets and related benefits when they pass away and guarantees that the distribution of those assets will follow the founder's wishes and the conditions outlined in the foundation. Succession Planning is very easily possible by creating and setting up a Foundation in DIFC.

More Details shall be shared in the coming series and parts of DIFC Foundation.

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