The main difference between a trust and a private fund is that the latter is a separate legal entity that owns assets, maintains business and signs contracts on its own behalf. Although a private foundation is a full legal entity, it has no shareholders or capital.
You can draw an analogy with another well-known type of organization - a charitable foundation. In a private foundation, as well as in that of a charity, one has the right to manage his/her funds in line with the statute and internal regulations, and there are no shareholders. However, in contrast to the charity fund, the purpose of a private foundation is to support and assist specific individuals-beneficiaries of the Fund.
Foundation can be sucessfully used for the folloing purposes:
- Family asset protection;
- Tax purposes;
- Asset protection and management;
- Educational purposes;
- Testamentary purposes;
- Life annuity purposes;
- Charitable purposes;
- Receiving and managing capital and titles;
- Insurance management.
We would like to draw your attention to the fact that a private foundation can be used for all or some of the purposes mentioned above without restrictions. For example, a foundation may be designed to protect assets and still serve testamentary purposes. However, no private foundation is allowed to join commercial or non-commercial projects, which work on a daily basis.
Alpha Consulting offers the following jurisdictions to create this protection instrument: