EssentialTrustBulletinissue2TrustorFoundationConnieClark.pdfVIP

Issue 2 ESSENTIAL TRUST BULLETIN A spotlight on the issues that matter most in the corporate and trust sector Trust or Foundation: what’s right for you? If you are considering ways to protect your assets or succession planning for the future, trusts and foundations are both valuable solutions. But there are a number of similarities and important differences between both options so you need to find what’s right for you. ersey has been a prominent player in the field of Notable differences are: administering trusts since the 1960s. In addition, the Jfoundation brought into force by the States of Jersey during • A trust does not have separate legal identity from its July 2009 is an important new type of legal entity that is a trustees. In contrast a foundation has an independent hybrid of a trust and a company. The foundation is a flexible legal identity and holds assets in its own name. The alternative to the traditional common law trust for tax and foundation therefore goes through an incorporation succession planning. So what does this mean in practice? The procedure, whereas the trust doesn’t, it is established upon foundation is particularly appealing to those from civil law the execution of the trust instrument and transfer of assets jurisdictions which have forced heirship provisions in their from the Settlor to the trust. As a trust does not have succession legislation. separate legal personality the trustee must hold trust assets, however a foundation, being a legal person, owns There are many other similarities and differences that will its own assets. define which one is best for you.