Foundations

Foundations are well suited to individuals less familiar with the concept of private trusts, or reluctant to relinquish all involvement in the management of assets. The activities that a foundation can carry out are wide ranging and flexible in that they can be created to bear resemblance to either trusts or companies.

A foundation is an incorporated body which brings together certain aspects of a trust but with a separate legal personality similar to that achieved through a corporate vehicle. It therefore has the ability to hold assets in its own name. A foundation will have no shareholders. It is also not required to name beneficiaries and may be established for a particular purpose. It requires a charter which is a public document setting out the name and objects of the foundation together with the regulations, which are a private document setting out how the assets are to be administered. The council is responsible for managing the assets and can consist of one or more members but must include a qualified member. A guardian must also be appointed to monitor the actions of the council.

Uses of a foundation include:

  • To act as trustee for private trusts
  • To benefit individuals
  • Succession planning
  • Umbrella for corporate holding structures
  • Owner of real estate
  • Pre-nuptial agreements
  • Charitable purposes
  • As shareholder of a private trust company
  • To hold assets with a volatile valuation
  • Retaining and preserving specific assets, including holding ‘wasting’ assets

Advantages of of foundations include:

  • Popular with those not familiar with the concept of trusts
  • Allows individuals an element of control over how assets are managed through the appointment of a guardian
  • Separate legal personality so that it may enter into contracts in its own right
  • More flexibility in than it can be established to reflect the characteristics of either a trust or company
  • Foundations may carry out any activities, apart from holding Jersey property or carrying out commercial trading that is not incidental to its objects
  • The foundation council is not accountable to the beneficiaries
  • As there is no beneficial owner it solves the problems of succession

Our services include:

  • Establishment of multi-jurisdictional foundations
  • Acting as the qualified member of a Jersey foundation
  • Provision of council members to act as the foundation council
  • Drafting of foundation regulations to meet the client’s specific requirements
  • Holding companies or private trusts to hold foundation assets
  • Provision of statutory services
  • Full administration services
  • Conversion of a company to a foundation