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The Jersey foundation is a perfect succession planning vehicle.
Use of Jersey foundations is to function as a succession planning vehicle
The Jersey foundation is a perfect succession planning vehicle. Assets placed in a Jersey foundation can be owned, controlled, preserved and enhanced, by the foundation on behalf of the future generations of a family. At the same time the founder can determine which members of his family benefit from the assets of the foundation, thus circumventing potentially restrictive laws of succession in the founder's home country.
Other advantages of a Jersey foundation as a succession planning vehicle include:
- Certainty: The Jersey foundation is a body corporate.
- Continuity: A foundation can own assets directly. It is not reliant on a third party such as a trustee for asset ownership.
- Control: Founders can be accommodated without threatening the incorporated status of the foundation.
- Confidentiality: If the Founder so desires, the approved beneficiaries of the foundation may be denied rights to information about the foundation.
- Longevity: Foundations may be of infinite duration.
- Flexibility: Jersey foundations can have fixed interest beneficiaries, or be fully discretionary; they may provide life interests, or successive life interests for beneficiaries, they can have non-charitable purpose objects and/or philanthropic objects; and these various arrangements may be made consecutively or concurrently.
- Tax efficiency: The Jersey foundation is not taxed on its income or gains in Jersey. Furthermore, onshore anti-avoidance rules typically attribute the income or gains of offshore companies (which is what a foundation is) to taxpayers who own shares or membership interests in the offshore company. A foundation does not have and cannot have shareholders or other members or participators.