Offshore foundations have certain distinct benefits that include private relationship, as the wishes of the founder will not be filed in a public registry.
Its purposes may be charitable, commercial or family-based and the duration of existence could be for a specific period or indefinite. Destinations where offshore foundations have developed excellently due to recent robust legislations include Panama, the Bahamas, Isle of Man and the Netherlands Antilles.
Foundations protect the wealth of its founders and all common and civil law jurisdictions recognise them. It enables people to avoid the rule of forced heirship as well as makes estate and inheritance tax planning easier.
Types of Assets Held in Offshore Foundation
Assets that may be held in an offshore foundation include but are not limited to stocks and shares from companies which may be either quoted or unquoted, investment portfolios, property; real or intellectual, life assurance policies and bank deposits.
Suitability of Offshore Foundations
An offshore foundation would be suitable for individuals who wish to protect their wealth from various instances of uncertainty whether economic, political or even family. It also suits those who wish to carry out a consolidation of their assets though owned globally, in a single location while ensuring tax efficiency in the transfer of wealth to their heirs and according to their own wishes as opposed to the laws of their country of domicile. It also helps in the elimination or minimization of estate taxes ordinarily payable upon the death of the founder.
Local Taxes
Local taxes are not payable on assets and income of the foundation if the local residents are excluded from enjoying benefits of the offshore foundation and insofar as the laws permit.
