- +44 (0)117 918 1321
The use of Jersey foundations: To hold assets "off balance sheet"
Uses of Jersey foundations: To conduct charitable and philanthropic activity
It is the essence of a Jersey foundation that it is
i) a body corporate,
ii) but without shareholders, or members.
As a body corporate, a Jersey foundation can, like any company, beneficially own assets. As such, the foundation becomes the owner of the asset, but the foundation itself is without owners. As such it is the perfect "orphan" or "self-orphaned" vehicle.
The assets transferred by Mr X are now owned by the foundation.
The foundation is managed by a Council (based in Jersey) and Mr X's uncle is the Guardian. The Guardian has power to appoint, remove and supervise the Council, and veto any major resolutions of the Council (e.g. to appoint or remove beneficiaries, or to transfer more than a specified percentage of the assets out of the ownership and control of the foundation).
Mr X and his family are beneficiaries of the foundation.
No person, whether a legal or natural person, can own the foundation. Therefore the investment portfolio is:
i) owned by the foundation,
ii) ultimately owned by no-one else.
In appropriate circumstances, such an arrangement can create significant international tax planning possibilities.