Foundations and Trusts Formation

Forming a foundation or a trust is a good option if you intend to manage and protect your family wealth or assets. Foundations and trusts enjoy tax exemption and many other benefits. That is why they are an excellent tool for wealth planning in the UAE. So, focus on foundation and trust formation to plan, protect, and manage your wealth.

The regulations, documentation, and procedures for foundation and trust formation vary across the UAE. It’s different in free zones, Emirates, and other countries. So, you must be extra cautious while setting up a family trust. FAME is an expert provider of foundation and trust formation services.

We are a specialist in establishing trusts and foundations for our clients in the following jurisdictions:

Dubai International Financial Centre (DIFC)
Abu Dhabi Global Market (ADGM)
Ras Al Khaimah International Corporate Centre (RAK ICC)
British Virgin Islands (BVI)
US
Singapore
Liechtenstein

So, if you have any questions about what to do with your wealth or assets, reach out to us. Our consultants understand your requirements and study your family wealth and assets. Based on this, we create a strategy for setting up a family trust. This strategy ensures the preservation and protection of your legacy into the future. Also, we ensure you comply with all the regulatory and legal obligations.

Want to have a better plan for your wealth and its distribution?

Get in touch with FAME for expert foundation and trust formation.

Our Offerings in Foundation and Trust Formation

Creating a trust or a foundation is a plan to secure your wealth. It helps you determine how you will pass your wealth to the next generation in your family or other beneficiaries. The benefit is that you do not lose the value of your assets. By setting up a family trust or foundation, you can achieve the following objectives:

Preservation of wealth
Protection of assets from forced rules or takeovers
Tax planning
Better management of passing wealth to beneficiaries (within or outside the family)
Doing charity or philanthropic activities for society
Keeping the ownership confidential
Keeping the value of assets and business/family wealth intact
Succession planning
Financial restructuring
Inter-generational legacy planning

Whatever your objectives are, we help you manage your wealth and plan your successors. We follow the appropriate regulations during foundation and trust formation in the UAE. We ensure client confidentiality while managing these solutions for businesses, individuals, and families.

Our services for setting up a family trust for creating a foundation are available for specific jurisdictions. These are well-positioned locations with flexible legalities to plan for your wealth. We can help you with foundation and trust formation in the following:

DIFC

Trusts and foundations are a preferred option in DIFC. The DIFC Law No. 3 & 4 of 2018 govern their formation. They are preferred instruments to preserve wealth, plan succession and legacy and protect family assets. It can also help you plan international taxation and risk management.

ADGM

The English law, with equal support of the local laws, governs trusts in ADGM. The trust formation process includes drafting a trust deed and appointing a licensed professional trustee. ADGM has a foundation regime catering to local, regional, and global high-net-worth families, individuals, and asset owners.

RAKICC

The RAK ICC Foundations Regulations 2019 is the governing law for foundation and trust formation in RAKICC. Its low-tax environment and secure legal landscape attract individuals and families to set up a family trust here. If you want to plan your inheritance and family asset-holding structure well, consider RAKICC.

BVI

BVI is an excellent option if you are looking for a strategic location outside the UAE for your financial and estate planning, personal wealth protection, and tax planning. You can form a discretionary, charitable, purpose, fixed interest, trust with protectors, or VISTA trusts in BVI. BVI does not have a foundation legislation. If you need assistance in harnessing BVI’s location benefits for setting up a family trust, company formation experts can help you.

US

The US has foundation and trust formation options for estate and income tax planning. State laws govern trust formation in the US, which differs in each state. But, most states follow the Uniform Trust Code. We can help you with setting up a family trust in the US to enjoy its business and economic environment.

Singapore

Several investment vehicles are available in Singapore for international investors to enjoy its attractive tax regime and stable economic policies. You can form charitable, statutory, private family, and collective investment trusts in Singapore. So, if you want to protect your wealth, plan your successors, save tax, or maintain the confidentiality of your owners, consider foundation and trust formation in Singapore.

Liechtenstein

You can set up a trust in Liechtenstein for commercial or non-commercial purposes. Forming a foundation is allowed in Liechtenstein but without shareholders. You can create it for private benefits or any common benefit. When you plan for any of these, FAME provides customized foundation and trust formation services.

Seeking help for managing wealth preservation and asset protection?

Access our valuable advice for setting up a family trust or foundation.

FAQs: Foundations and Trusts Formation

What is the difference between a foundation and a trust?

The differences between a trust and a foundation are as follows:

A trust is a legal relationship between a trustee, settlor, and beneficiary. A foundation is an independent legal entity with features of both – a trust and a corporate.
A trust is a private arrangement, with the trustee as the legal owner who manages assets for the beneficiaries. An individual or a single-family creates a foundation as an investment and wealth protection vehicle.
In a trust, the settlor prepares a trust deed. For the benefit of the beneficiary, the settlor transfers assets to the trustee immediately. In the case of a foundation, the founder (provider of assets) creates a foundation at the public registry. But there is no immediate transfer of assets.
Charitable and discretionary trusts are the two types of trusts possible in the UAE. On the other hand, charitable, private, and corporate are the different types of foundations you can form in UAE.
In a trust, the assets are only used for the beneficiaries’ benefits. The beneficiaries can be individuals or specific organizations. A foundation can carry out specific initiatives or programs defined in the charter per the founder’s objectives.
A trust is not a legal entity, so no one can sue it or take legal action against it. A foundation is a legal entity that can enter into contracts, do commercial activities, open bank accounts, sue and be sued.
The trustee is in charge of the assets of the trust. A Council comprising one or more persons manages the foundation.
Having a protector for a trust is a choice. But a foundation must have a registered agent and a registered office in the UAE.
The trustee must accept the liabilities in a trust. A foundation has a limited liability to protect the beneficiaries’ and Council members’ assets.