foundation structures
Secure Your Assets and Legacy with a foundation in the uae
A flexible legal entity ideal for asset protection, wealth management, estate planning, and inheritance management
A Foundation Structure is a flexible legal entity designed primarily for asset management, wealth preservation, and estate planning. Unlike other business structures, foundations are ownerless and are governed by a board of directors, making them ideal for individuals and families looking to safeguard their assets for future generations or charitable purposes. With its flexibility and legal protections, a foundation is a popular choice for those who seek long-term financial security and philanthropic goals.
Key Features of Foundation Structures
Ownerless Legal Entity: A foundation is not owned by any individuals or shareholders, making it ideal for succession planning and asset protection.
Governed by a Board: The foundation is managed by a board of directors, which ensures the assets are used in accordance with the foundation’s charter or by-laws.
Flexibility for Asset Management: Foundation structures provide extensive flexibility in how assets are managed, allowing for multiple purposes such as estate planning, wealth management, and philanthropic endeavors.
Wealth Preservation: Foundations offer robust legal mechanisms to protect family wealth and assets, ensuring they are safeguarded for future generations.
Benefits of a Foundation Structure
Long-Term Asset Protection: Foundations are designed to protect assets across generations, making them ideal for estate planning and wealth preservation.
Philanthropic Purposes: Foundations can be used to manage charitable activities, allowing donors to establish a structured and long-lasting charitable organization.
Privacy and Control: Unlike other structures, foundations allow individuals to maintain control over assets while keeping ownership details private.
Succession Planning: Foundation structures ensure that assets are passed on in a structured and organized way, according to the foundation’s regulations and governance.
Who Should Choose a Foundation Structure?
A Foundation Structure is ideal for:
High-Net-Worth Individuals: Those looking to protect family assets for future generations while maintaining control over how the assets are managed.
Philanthropists: Individuals or families who wish to create a structured, enduring entity to manage charitable donations or philanthropic activities.
Business Owners: Entrepreneurs seeking a vehicle for succession planning, ensuring their business assets are securely passed on according to their wishes.
Estate Planners: Individuals looking to centralize and organize their assets for long-term management, distribution, or preservation.
Steps for Setting Up a Foundation Structure
Here’s a simplified guide to setting up a Foundation Structure in the UAE:
Determine the Purpose of the Foundation: Decide whether the foundation will focus on wealth preservation, estate planning, or philanthropic activities.
Prepare Legal Documents: Draft the foundation’s charter or by-laws, outlining its purpose, governance structure, and asset management rules.
Appoint a Board of Directors: The foundation must be governed by a board, which will manage the assets and oversee the foundation’s operations.
Register the Foundation: Submit the required documents to the relevant UAE authority to establish the foundation as a legal entity.
Asset Transfer: Transfer the designated assets, such as properties, investments, or business interests, into the foundation.
Common Pitfalls to Avoid
Failure to Properly Structure Governance: One common mistake is not clearly defining the roles and responsibilities of the board, which can lead to confusion and legal issues down the line.
Lack of Compliance: Foundations must comply with local regulations, and failure to do so can lead to penalties or the dissolution of the foundation.
Overlooking Long-Term Planning: Foundations are built for longevity, so it’s important to consider the long-term impact of the foundation’s purpose and structure.
How YKT Can Help
At YKT, we offer expert guidance in setting up Foundation Structures along with our legal partners registered with Dubai International Financial Center (DIFC) and Abu Dhabi Global Market (ADGM), that are tailored to your specific needs. From drafting the foundation’s charter to managing regulatory compliance, we ensure that your assets are protected and your goals are achieved. Whether you’re looking to secure family wealth, engage in charitable activities, or manage an estate, YKT provides the expertise you need for long-term success.
Interested in setting up a Foundation Structure? Contact YKT today to learn how we can help secure your assets and legacy.