High net worth individuals often wonder: What’s the optimal structure for wealth planning—foundation or trust? Today, we take a deep dive into this question, unpacking the key similarities and differences, and shedding light on which option might be better suited for different planning goals.
Foundations & trusts both can be used as efficient structures for wealth planning. A foundation is a separate legal entity, whereas a trust is a relationship or an arrangement between persons.
The two do differ in terms of registration requirements, control and governance.
Many factors will determine which is an ideal structure for your needs: country of residence or assets, level of control desired, and tax implications.
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