Private Wealth · Foundations
International PrivateFoundations
Establishing and supporting private foundations for family capital, business, real estate, investment assets and succession planning.
BRIDGES GLOBAL chooses the jurisdiction and the architecture of a Private Foundation in the light of the composition of the assets, the family, the participants’ tax residency, the banking infrastructure and the client’s long-term aim.
We run the whole project: from the choice of jurisdiction and governance to the establishment of the foundation, the banking infrastructure, the transfer of the assets and the annual administration.
This concerns private and family foundations — structures for holding family capital. It is not a collective investment scheme and not an investment fund: the legal nature of a Foundation is determined by the law of the chosen jurisdiction.
Foundation Charter
- 02Foundation Regulations
- 03Council Resolution
- 04Beneficiary Schedule
- 05Asset Schedule
- 06Protector / Guardian Powers
- 07Banking Profile
- 08Annual Governance Review
- Founder
- Foundation
- Holding Company
- Business · Investments · Real Estate
- Beneficiaries
Selection
Find the Foundation for your task
01 The main task
02 Where the main assets are
03 What matters more
The selection does not produce an automatic legal opinion: the applicable directions are determined once the assets, the family and the participants’ residency have been analysed.
Jurisdictions
Jurisdictions for Private Foundations
9 / 9
- from $9,500Setup
- upkeep thereafter from $5,500 a yearAnnual
- 2-3 weeksTiming
- Family Wealth
- Succession
- Business
- from $18,500Setup
- upkeep thereafter from $9,000 a yearAnnual
- 3-5 weeksTiming
- Investment
- Family Wealth
- from $28,000Setup
- upkeep thereafter from $14,000 a yearAnnual
- 4-6 weeksTiming
- Family Wealth
- Succession
- Investment
- from $32,000Setup
- upkeep thereafter from $16,000 a yearAnnual
- 6-8 weeksTiming
- Family Wealth
- Succession
- Business
- from $8,500Setup
- upkeep thereafter from $4,500 a yearAnnual
- 2-3 weeksTiming
- Family Wealth
- Succession
- from $11,500Setup
- upkeep thereafter from $6,000 a yearAnnual
- 3-4 weeksTiming
- Family Wealth
- Investment
- from $6,500Setup
- upkeep thereafter from $3,500 a yearAnnual
- 2-3 weeksTiming
- Family Wealth
- Succession
- calculated after the reviewSetup
- calculated after the reviewAnnual
- Family Wealth
- Succession
- Business
- calculated after the reviewSetup
- calculated after the reviewAnnual
- Family Wealth
- Succession
- Business
The cost of establishment and of annual support is stated for confirmed BRIDGES GLOBAL packages and is refined once the composition of the assets and the bank’s requirements have been analysed.
Comparing jurisdictions
Compare up to three Foundations
Tick up to three jurisdictions in the catalogue above.
Cost
The cost of establishment and of annual support
- Structuring
- Foundation Establishment
- Legal Documents
- Council / Administrator Onboarding
- KYC / Source of Wealth
- Banking Preparation
- Asset Transfer
- Foundation Administration
- Council / Administrator
- Registered Office
- Accounting
- Reporting
- Compliance
- Banking Review
- Governance
The cost of a Foundation over three years
- Establishment
- Legal Documents
- Governance
- KYC
- Banking
- Asset Transfer
- Administration
- Council
- Accounting
- Reporting
- Compliance
- Administration
- Council
- Accounting
- Reporting
- Compliance
For a family structure the annual upkeep matters more than the initial price: the calculation is put together for the chosen jurisdiction and administrator.
Support
Annual support of a Private Foundation
- Registered Office
- Council / Administrator
- Annual Filings
- Accounting
- Compliance
- KYC Updates
- Beneficiary Changes
- Asset Changes
- Bank Compliance
- Governance Review
- Distributions
- Document Maintenance
Legal nature
The legal nature of a Private Foundation
Establishes the Foundation and transfers the initial assets in accordance with the applicable law.
A structure in its own right, whose legal nature is determined by the law of the chosen jurisdiction.
The Foundation’s governing body.
The persons or classes of persons in whose interests the distributions provided for by the documents may be made.
Where provided for by the law and the documentation, exercises defined control or approval functions.
The principal constitutive document.
Additional rules on management, beneficiaries, distributions and governance, where that construction is used.
The names of the organs and the documents differ between jurisdictions: the terminology is checked against the law of the chosen country.
The difference
A Foundation and a Trust are different legal instruments
Usually has legal personality of its own under the law of the particular jurisdiction.
A classic trust is a legal relationship; legal title to the trust property is held by the trustee.
That is exactly why the choice between a Foundation and a Trust cannot be made on price or on the degree of «protection» alone.
Comparison
A Foundation, a Trust or a Holding Company
| Foundation | Trust | Holding Company | |
|---|---|---|---|
| Legal Personality | A person in its own right under the law of the jurisdiction | A legal relationship; usually no separate person | A legal entity |
| Ownership of Assets | The assets belong to the foundation | Legal title is held by the trustee | The assets belong to the company |
| Founder / Settlor | The founder establishes the foundation and transfers the assets | The settlor transfers the assets to the trustee | The founder receives the shares |
| Management | The council, under the charter and the regulations | The trustee, within the trust deed | The directors |
| Beneficiaries | Defined by the charter and the regulations | Defined by the trust deed | The shareholders |
| Control | The council and, where there is one, the protector / guardian | The trustee and, where there is one, the protector | The shareholders and the governing bodies |
| Succession | The order is set by the foundation’s documents | The order is set by the trust deed | Shares pass under the general rules of inheritance |
| Family Governance | Regulations, council, guardian | Trust deed, Letter of Wishes, protector | A shareholders’ agreement and the articles |
| Banking | The foundation’s account | The account is opened by the trustee for the structure | A corporate account |
| Public Disclosure | Depends on the jurisdiction and the register | Depends on the jurisdiction | Corporate registers and UBO |
| CRS / FATCA | The status is determined by the applicable reporting rules | The status is determined by the applicable reporting rules | The status is determined by the applicable reporting rules |
| Accounting | The foundation’s records and reporting | Records to the extent set by the trustee and the law | The company’s accounting and reporting |
| Annual Administration | The council, the agent, the address, the reporting | The trustee fee and the administration | The agent, the address, the reporting |
| Typical Use | Family capital, governance, succession | Family capital, long-term ownership | Operations, holding shareholdings |
| Setup Cost | from $6,500 | from $9,500 | depends on the jurisdiction |
| Annual Cost | from $3,500 a year | from $4,500 a year | depends on the jurisdiction |
Architecture
The Foundation as the top level of a family structure
- 01FamilyThe founder and the family
- 02Private FoundationThe top level of ownership
- 03Family HoldingThe holder of the shareholdings and the assets
- 04SPV · Operating Business · Investment CompanyIndividual assets and operating companies
- 05Bank / CustodianThe banking and investment infrastructure
- 06Investment PortfolioThe portfolio and the distributions
- Beneficiaries
- Protector / Guardian, where applicable
Assets
Which assets are to be transferred into the Foundation
- Family Business
- Holding Company
- Real Estate
- Bank Accounts
- Investment Portfolio
- Shares
- Digital Assets
- Intellectual Property
- Several Asset Classes
Whether a particular asset may be held directly or indirectly is determined by the law of the Foundation, the law of the country where the asset is located, the tax consequences and the requirements of banks and registrars.
Scenarios
How a Foundation connects to the assets
A Foundation and international real estate
- Foundation
- Holding
- SPV
- Property
A Foundation as the top level of a corporate structure
- Family
- Foundation
- Holding Company
- Operating Companies
A Foundation and digital assets
- Foundation
- Holding / Investment Entity
- Regulated Custody
- Digital Assets
Succession
Family capital and succession planning
- Founder
- Foundation
- Children
- Grandchildren
- Future Generations
A Foundation sets a long-term order of ownership and distribution of capital, but does not by itself cancel inheritance tax, forced-heirship rules, spousal claims, reporting duties or the participants’ tax obligations: the consequences depend on the countries involved.
Governance
The rules for managing family capital
- the powers of the Council
- the Founder’s reserved powers, where permitted
- Protector / Guardian
- the order of distributions
- appointing and changing beneficiaries
- succession of Council
- voting
- conflicts of interest
- investment powers
- emergency provisions
- incapacity of Founder
- family governance
The rules are designed for the particular family and jurisdiction: a template charter does not come free with the structure.
Limits
The legal limits of using a Foundation
- Existing Claims
- Fraudulent Transfer
- Insolvency
- Sham / Nominee Risk
- Excessive Founder Control
- Sanctions
- Tax Claims
- Public Policy
- Clawback / Challenge Periods
A Foundation must not be created to conceal assets from lawful claims that already exist.
The bank
The banking infrastructure of a Private Foundation
- Founder / Family
- Source of Wealth
- Foundation
- Bank / Custodian
- Investment / Assets
Before the jurisdiction is chosen we analyse
- Founder
- Council
- Beneficiaries
- Protector / Guardian
- purpose
- Source of Funds
- Source of Wealth
- asset geography
- expected transactions
- sanctions / PEP
- bankability
The origin of the capital
Evidencing the origin of the capital when a Foundation is established
- Source of Wealth
- Foundation onboarding
- Bank onboarding
- Asset Transfer
BRIDGES GLOBAL can separately prepare a Source of Funds / Source of Wealth dossier to the requirements of the foundation’s administrator and of the bank.
Prepare a Source of Wealth dossier →The scope of work
Establishing a Private Foundation from start to finish
The composition of the family, the beneficiaries, the assets, the residency and the aims.
Foundation vs Trust vs Holding.
Law, cost, banking, disclosure, governance.
Founder, Council, Protector / Guardian, beneficiaries.
Coordinating the preparation of the documents.
Compliance on the founders, the beneficiaries and the assets.
Registration and establishment of the structure.
Preparing the financial infrastructure.
Transferring shareholdings, funds and other assets.
Governance, filings, accounting and compliance after the establishment.
The result
Foundation Corporate Book
- 01Foundation Charter
- 02Foundation Regulations
- 03Council Resolution
- 04Beneficiary Schedule
- 05Guardian / Protector Documentation
- 06Asset Schedule
- 07Ownership Structure
- 08Banking Dossier
- 09Compliance File
- 10Annual Governance Calendar
What the set contains depends on the jurisdiction and the architecture of the structure.
Consultation
A consultation on the ownership structure — $300
At the consultation we work through the task and determine which structure applies.
- the composition of the assets and the countries where they are located
- the family and the beneficiaries
- the participants’ tax residency
- the business and the shareholdings in companies
- the banking and investment infrastructure
- the aims of succession and governance
- the client’s existing structures
- the distributions envisaged
The result: the applicable jurisdictions and the form of the structure, the main constraints and a preliminary budget for the establishment and the upkeep.
FAQ
Questions and answers
A Private Foundation is a structure for holding family capital, not a collective investment scheme. It does not raise money from investors and does not issue units: the assets belong to the structure itself and are managed by the council under the charter.
The assets belong to the Foundation itself as a legal structure under the law of the chosen jurisdiction, and not to the founder or the beneficiaries personally.
Some powers may be provided for by the charter and the regulations where the law of the jurisdiction allows it. Excessive control by the founder is the main risk of the structure being challenged.
No. The rules on existing claims, on setting aside transactions, on insolvency and on limitation periods all apply. The structure is created in advance, not after the claims have arisen.
The tax consequences depend on the applicable law and on the residency of the founder, the council and the beneficiaries. Establishing a foundation does not by itself cancel the participants’ tax obligations.
Establishment under the confirmed packages starts from $6,500 and depends on the jurisdiction, the composition of the assets and the governance requirements; annual support is calculated separately.
From two or three weeks to a month and a half or two, depending on the jurisdiction, the readiness of the documents and the source-of-capital file.
The decision is the bank’s. Before the jurisdiction is chosen we assess the founder, the council, the beneficiaries, the sources of capital and the expected operations, so that the structure will pass a bank.
As a rule a holding company or an SPV in the country where the property is located is placed between the foundation and the property; direct ownership is not possible everywhere.
A Foundation usually has legal personality of its own, while a trust is a legal relationship with legal title held by the trustee. The choice depends on the task, the law of the jurisdiction and what the family’s banks are used to working with.
The structure and the calculation
Get the structure and the calculation for a Private Foundation
Describe the composition of the assets, the countries, the family task and the expected amount of capital. We will compare the applicable jurisdictions, determine the architecture of the Foundation and prepare a calculation of the establishment and the annual support.
A preliminary calculation is not a guarantee that the structure will be accepted by the foundation’s administrator or by a bank. The tax and succession consequences depend on the applicable law and on the participants’ residency.