The Assets placed inside a Foundation are sole and separate property and cannot be seized to satisfy any personal judgements or obligations of the founder or the foundation’s beneficiaries. Assets inside a Foundation cannot be attached in order to satisfy any claims against the founder, including judgements for divorce, lawsuit and other liabilities.
The Foundation offers the best of a trust and the best of an offshore corporation.While the Foundation cannot technically engage in business activities, it can own the shares of a company engaged in business activities. It is also permissible for the foundation to engage in any activity, which will increase the value of assets. This means that a Foundation can be the owner of bank accounts, securities brokerage accounts and real estate holdings.
Since there are no shares of ownership in a Foundation, the founder does not own the Foundation and as such gains important tax reporting and protection benefits with this.
In reality, there are quite a number of practical uses and strategies for the use of a Foundation. As an asset protection vehicle, there is probably no better entity in any jurisdiction at the present time for this purpose.
For more information on how to use a Foundation as part of an overall asset protection strategy, and to hear about ways we have assisted other clients, please contact our office.