What is the difference between a trust and a foundation?

A trust is a fiduciary arrangement where a trustee holds and manages assets for beneficiaries according to the trust deed. A foundation is an independent legal entity with its own governance structure. Trusts are common in common-law jurisdictions (US, UK, BVI), while foundations are typical in civil-law countries (Panama, Liechtenstein). Both can serve wealth preservation and succession purposes.

When should I consider establishing a trust?

Consider a trust when you want to protect assets from potential creditors, plan for incapacity, minimize estate taxes, provide for minor or special-needs beneficiaries, maintain privacy in wealth transfer, or establish a structured succession plan across multiple jurisdictions.

Can a US person establish an offshore trust?

Yes, US persons can establish offshore trusts, but they must comply with extensive IRS reporting requirements including Forms 3520 and 3520-A. The tax benefits are limited for US taxpayers, but offshore trusts can provide asset protection, privacy, and multi-jurisdictional succession planning benefits.

Trusts & Foundations

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Advisory Trusts &
Foundations For high-net-worth families with cross-border assets and multi-generational planning horizons, trusts and foundations are foundational structuring tools — not optional enhancements.

12+ Trust Jurisdictions

20+ Years Experience

3 Global Offices

Two Instruments, One Purpose

01 Trusts A trust separates legal ownership from beneficial enjoyment. The settlor transfers assets to a trustee, who holds and manages them for designated beneficiaries according to the trust deed.

Key Features Common law origin
No legal personality
Fiduciary duty framework
Revocable or irrevocable
High confidentiality

02 Foundations A private interest foundation is a legal entity that holds assets in its own name. Unlike a trust, it has legal personality and is governed by a foundation council, combining corporate structure with estate planning flexibility.

Key Features Civil law origin
Separate legal personality
Foundation council governance
Familiar to civil law clients
Asset ring-fencing

Structure Types We Design

BVI VISTA Trusts Under the Virgin Islands Special Trusts Act, the trustee holds shares in a BVI company but is relieved of any duty to intervene in management. An “office of director” preserves family control over operating businesses while achieving the succession and asset protection benefits of trust ownership.

Cayman Islands STAR Trusts The Special Trusts (Alternative Regime) permits trusts for persons, purposes, or both — enforced by an “enforcer” rather than beneficiaries. Suitable for family governance, philanthropic planning, and commercial purposes beyond traditional trust categories.

Domestic Asset Protection Trusts Self-settled irrevocable trusts in Nevada, South Dakota, and Delaware — jurisdictions with no state income tax, perpetual duration, and strong creditor protection statutes with short fraudulent transfer windows.

Private Interest Foundations Panama and Liechtenstein foundations for clients from civil law jurisdictions. Governed by a foundation council with separate legal personality — combining corporate structure familiarity with estate planning flexibility.

Trust Protector Structures Modern offshore regimes incorporate a trust protector — a fiduciary who holds reserved powers to appoint and remove trustees, amend terms, and direct or veto distributions. We advise on the careful delineation of protector powers to avoid recharacterization.

Dynasty & Purpose Trusts Multi-generational structures in jurisdictions with no rule against perpetuities, including charitable remainder trusts, charitable lead trusts, and non-charitable purpose trusts under STAR or equivalent frameworks.

Jurisdictional Reach

Nevada & South Dakota No state income tax, strong self-settled trust protection, perpetual duration.

Delaware Directed trust legislation, no income tax on out-of-state beneficiaries, strong trust law.

BVI VISTA trusts for holding company shares without trustee interference in business decisions.

Cayman Islands STAR trusts for persons, purposes, or both — with enforcer-based governance.

Nevis & Cook Islands Offshore asset protection with short statute of limitations and flight clauses.

Panama Private interest foundations with council governance, familiar to Latin American clients.

Liechtenstein Stiftung foundations with robust regulatory framework and European treaty network.

Jersey Established trust jurisdiction with JFSC regulation and strong institutional trustee infrastructure.

Applications

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Multi-generational wealth transfer Dynasty-style structures holding diversified portfolios, real property, and business interests across jurisdictions.

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Succession planning Defined governance with trustee succession provisions, letter-of-wishes protocols, and structured distribution schedules.

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Asset protection Flight clauses, anti-forced-heirship provisions, and firewall legislation insulating trusts from foreign court orders.

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Family governance Integrated trust and corporate structures combining VISTA trusts with BVI holding companies for family business control.

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Philanthropic planning Charitable and mixed-purpose trusts under STAR or equivalent frameworks combining giving with tax efficiency.

A trust is not a product you buy.
It is an architecture you build.

Related Advisory Services

01 Wealth Structuring Estate planning, succession design, and cross-border wealth preservation strategies. 02 Asset Protection Multi-layered frameworks to shield wealth from creditors and litigation risk. 03 International Tax Cross-border tax analysis, treaty optimization, and compliance architecture.

Design your trust architecture. Schedule a confidential consultation to evaluate which trust or foundation structure aligns with your family, jurisdiction, and long-term objectives. SCHEDULE CONSULTATION