Foundations were first introduced in the UAE in 2017 and have gained international prominence quickly, being independent legal entities and allowing individuals to confidentiality consolidate their wealth, while keeping their personal assets distinct from their other interests. This separation takes place by endowing assets to the foundation, while retaining control and access.

A foundation is free from shareholders and are managed according to their charter on behalf of  named beneficiaries. This striking feature of foundations makes them suitable for succession planning.

Advantages of Establishing a Foundation through Cornerstone

Establishing a foundation/SPV package in the UAE offers several potential benefits. These include:

• Protecting Assets
  • When assets are transferred to a foundation, they no longer belong to the founder, making them less vulnerable to government claims, creditors, or disputes with family, while ensuring the security and preservation of your wealth.
• Privacy
  • Since foundation details remain confidential, they ensure discreet family wealth management. It reduces the potential for claims or judicial actions from third parties.

• Flexibility
  • When the beneficial and legal ownerships are separated, families can adapt their wealth management strategies to changing goals. Thus their inter-generational legacy planning and wealth protection remain effective regardless of the global or changing family conditions.

• Effective Succession Planning
  • Foundations have proven to be highly effective succession planning tools, founders get peace of mind, knowing that the asset distribution will comply with their wished, not considering succession laws. Foundations protect a family’s assets in different scenarios like bankruptcy or divorce, while expediting asset transfers and mitigating complexities associated with probate.

• Better Family Governance
  • Foundations offer an effective corporate governance framework to manage a company [SPV] allowing systematic management of their wealth, ensuring optimal protection of assets and their distribution.

• Legacy in Perpetuity
  • The goals and vision of the founder continue in perpetuity. This is long-term commitment ensures the positive impact of the founder on their community, family, or chosen causes.

Cornerstone is a trusted and experienced facilitator, working with legal and accountancy professionals in the UAE, providing expert guidance to clients looking to establish an Asset Protection Strategy. Our dedicated team offers customized solutions to ensure that your Foundation is set up with professionalism and a deep understanding in our areas of expertise.

Our areas of Expertise:

• The rise of Crypto assets
• Tokenized real world assets
• Asset Preservation
• Succession planning
• Protecting assets from over taxation
• Using SPV’s for corporate restructuring
• Corporate tax mitigation
• Digital currency and Forex
• Fiduciary relationships
• Independent taxation reviews
• Investing in worldwide asset classes
• Business consultancy
• Business growth vehicles