Trust & Foundation

Trust

 

A trust is a fiduciary obligation created by the Settlor, binding a person or persons, known as the Trustee, to deal with the property or assets settled on trust (the trust property) for the benefit of the Beneficiaries or for a Charitable Purpose in accordance with the terms of the trust. Any type of property may be settled on trust, such as shares in companies, bonds, cash, copyright, patents and trademarks.

 

The holding of property by the trustee under trust has the following legal effects:

 

  • Personal creditors of the trustee have no recourse against the trust property;

  • The trust property does not form part of the trustee’s personal estate upon his insolvency or bankruptcy (unless the trustee himself has a claim against the trust); and

  • The trust property does not form part of the matrimonial property of the trustee or his spouse nor part of the trustee’s estate upon his death.

 

Foundation

 

A Foundation is an organisation that is created by the Founder/s before a notary.  They can be established for the private benefit of persons and for a purposes.  As in the case of Trusts, the Administrator will have a fiduciary relationship with the beneficiaries.

 

Foundations may own commercial property such as shares in a company, trademarks or franchise as long as it receives passive income. 

Copyright Notice: ©2018 Fiduscorp Limited (Co Reg No: C 84645).  The contents have been prepared for informational purposes only and cannot be reproduced in any way without the prior written consent. The information contained does not constitute or contain any type of advice or invitation for service.  All rights reserved.