What you need to know about Foundations
What is a Foundation?
A foundation is usually a body corporate that holds assets, usually provided by the Founder or sometimes by other Dedicators for a particular purpose or for the benefit of particular Beneficiaries.
Beneficiaries do not usually have any legal or beneficial interest in the assets of the foundation.
A foundation must have a Registered Agent that has responsibility for certain functions.
The assets of the foundation are administered by a Council, who have a fiduciary duty to act in accordance with the foundation instrument and in good faith.
How does a foundation differ from a Trust?
A Foundation differs in main from a Trust in that it is a legal person whilst the Trust is a legal relationship.
In which jurisdictions can you form a Foundation?
The most commonly used jurisdictions are:
- Isle of Man