Foundations & Trusts

MAIN DIFFERENCES BETWEEN PRIVATE FOUNDATION AND TRUSTS:

There are certain differences between Private Foundations and Trusts:
  • A foundation is the owner of its own assets
  • It possesses its own legal personality
  • There is no "Trustee"
  • A foundation is registered and is subject to an annual fee
  • Charter registered at the Public Registry
  • Created under the law of the sovereign state
  • Corporate entity
  • Legal personality
  • No owner
  • Perpetual or limited life
  • Holds title to its assets
  • Minimum patrimony $10,000
Find out more about Foundations

There are also some similarities including:
  • It is a juridical institution regarding specific formalities
  • Some of the founders assets are transferred, contributed or "donated"
  • A foundation may be revocable
  • It is usually created with the purpose of managing and preserving assets for the benefit of donors close relatives
Find out more about Trusts