Trust & Foundation
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.
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.