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An excellent tax planning and asset protection tool.
Almost all of us realize the benefit of using a Trust, to plan
against inheritance taxes, to protect assets against future
creditors or to eliminate probate. In our practice we see that
due to probate procedures, sometimes inherit ants are forced to
wait as long as 2 years and pay hefty legal fees, before gaining
access to a patrimony left behind.
However, despite its many advantages, frequently we choose not
to use a Trust, because we do not feel comfortable, giving the
control over our family patrimony, to strangers (Trustees).
A Private Foundation could serve as an excellent tool to solve
these issues. It offers ample opportunity to retain control,
while obtaining all the benefits of a Trust and in certain
cases, even more.
A Private Foundation could be considered as the civil law
equivalent to an English common law Trust, but unlike Trusts
they are treated, as equivalent to Private Limited Companies. In
fact they are, self-owning legal entities without ultimate
beneficial owner(s), thus exempt from the typical anti-avoidance
provisions.
Conceptually, The Private Foundation may be described as the
endowment of a patrimony for a specific purpose (object)
determined in the document whereby the foundation is created and
internally organized known as the Foundation Charter. An
appointed body known as the Foundation Council is entrusted to
pursuit the objects of the Foundation. The person(s) who creates
the endowment is known as the Founder and the persons who
benefit from the endowment (traditionally the founder and/or
members of his family) are known as the Beneficiaries.
A Private Foundation is a legal entity which you can use, to
hold your properties, bank accounts and other assets and keep
your identity confidential.
Apart from the keeping your identity confidential, a Private
Foundation has the following advantages:
Asset Protection, assets placed in a Private Foundation are
generally beyond the reach of creditors who might arise as a
result of financial difficulties, divorce proceedings,
litigation etc.
Retention of Control, the Private Foundation allows for you to
retain control and be able to decide, to whom the control over
your assets will pass when you are no longer able to exercise
this control.
Lifetime Tax savings, during your lifetime, you will realize
substantial income and capital gain tax advantages as the result
of using a Private Foundation.
Saving on Inheritance Tax, on death, the inheritance tax which
would normally be assessed on the value of your patrimony would
generally be eradicated.
Continuity, Private Foundation provides a mean whereby your
patrimony can continue to be administered in accordance with
your wishes, after death. The weak family member can be
protected from others and the spendthrift family member can be
protected from himself.
Avoidance of Probate, a Private Foundation provides means
whereby, a patrimony can smoothly be passed on to the next
generation without disruption, delays, substantial costs, loss
of confidentiality associated with the probate procedure which
necessarily follows, if a Private Foundation is not used.
Feel free contact us at info@sadekya.com for more information on
how we can help you realize these benefits.
Sadekya Fiduciary Partners.
Rudsel. J. Lucas TEP, Managing Director
Saliña Galleries Unit A-201
P.O. Box 4750
Curacao, Netherlands Antilles
Telephone: 599 9 4652698
rudsel.lucas@sadekya.com
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