- The primary purpose of this legal entity is to facilitate the confidential management of global family assets for the benefit of designated beneficiaries. Facilitating succession and inheritance for family members. A Foundation is most suitable for holding assets such as properties, shares in other companies and other forms of investments and has traditionally been used to hold and pass assets from one generation to another in complete confidentiality. Registration of a Foundation by a Settlor allows the individual to complete a wish. The assets put in Trust by the Settlor become the assets of the Foundation;
- Like a company, a Jersey Foundation setup has a separate legal personality distinct from anybody who has an interest in the Foundation. The entity does not have a board of directors, but appoints a Foundation Council (FC) instead. The FC may be natural persons or bodies corporate of any nationality. At least one member of the Council must be a natural person, a resident of Jersey. If our Client engages our firm to project manage the establishment of a Jersey foundation, Healy Consultants’ preferred Jersey trust company will supply this resident FC member for an annual fee of £12,300. The members of the council represent the foundation and carry out the will of the founder as stated in the statutes and bylaws. It therefore has a serving function rather than a decision-making function;
- The Foundation registration laws were introduced in Jersey in order to cater for wealthy Clients from non-trust jurisdictions, who prefer contractual arrangements offshore (the rights of beneficiaries of a Foundation are contractual) rather than relying on the equitable obligations and “conscience” of trustees of trusts;
- There is no Jersey tax payable when assets are distributed to its beneficiaries.
- To learn more about setting up a family office to hold and manage family assets, visit our page comparing different wealth management vehicles.