Foundations & Trusts Services in UAE
Access secure asset protection and estate planning solutions, ensuring legal compliance, confidentiality, and financial security for individuals, families, and businesses in Dubai.
Book Free ConsultationFoundations & Trusts Setup in the UAE
In today's financial world, where wealth preservation and succession planning are vital, foundation & trust services in Dubai are key tools for protecting assets and ensuring they are managed and transferred according to the owner’s wishes. These legal structures offer stability, control, and flexibility, making them attractive to high-net-worth individuals, families, and businesses alike.
Although both trusts and foundations serve to protect and manage wealth, they differ in their structure and governance. A trust is a legal arrangement where a settlor transfers assets to a trustee, who manages them on behalf of beneficiaries, including individuals, organizations, or other entities.
Trusts are highly flexible, allowing the settlor to set customized terms for asset management and distribution. This makes trusts particularly useful for personal, financial, or charitable goals, as well as for wealth management, asset protection, and succession planning.
A foundation, in contrast, is an independent legal entity with its own legal personality, typically created for specific purposes such as philanthropy or family wealth management.
Unlike trusts, foundations are self-governing, with the foundation holding and managing its assets under the direction of a board or appointed managers. This structure allows for greater control over asset distribution, making foundations ideal for individuals seeking continuous involvement in managing their wealth.
What are Trusts and Foundations?
Trusts and Foundations are legal structures that enable individuals and families to protect, manage, and transfer their wealth efficiently. While both serve similar purposes, they differ in structure and governance:
Trust
A trust is a legal arrangement where one party (the settlor) transfers assets to another party (the trustee) to be managed for the benefit of specific individuals or entities (the beneficiaries). Trusts are highly flexible, allowing for customized terms that can address a variety of personal, financial, and charitable goals.
Foundation
A foundation is an independent legal entity that holds assets for a specific purpose, typically philanthropic or family-oriented. Unlike a trust, a foundation is a self-governing organization with its own legal personality, making it an ideal structure for those looking to maintain control over asset management and distribution.
Trust & Foundation Setup Advantages
Asset Protection
Provide a legal framework to safeguard assets from creditors, legal disputes, and other liabilities.
Succession Planning
These structures ensure the seamless transfer of wealth to future generations, reducing complications in inheritance and distribution.
Tax Efficiency
Foundation & trust services in Dubai can be structured to optimize tax liabilities, offering potential tax benefits and reductions in certain jurisdictions.
Confidentiality
Allow for the private management of wealth, as details of the trust or foundation and its assets can be kept confidential.
Philanthropy
Foundations are ideal for individuals or families who wish to establish charitable organizations and control how their donations are distributed.
Flexibility
Both trusts and foundations offer flexibility in terms of asset management and distribution, customized to meet specific objectives.
Control and Governance
A foundation, in particular, allows for self-governance, where the founder can maintain control over the assets and how they are used.
Risk Mitigation
By separating assets into a trust or foundation, businesses and individuals can reduce exposure to risk from personal or business liabilities.
Why Choose UAE for Setting Up Trusts & Foundations?
The UAE is an ideal destination for establishing trusts and foundations due to its robust legal framework, particularly in zones like DIFC and ADGM, which follow common law principles. These structures provide strong asset protection, shielding wealth from liabilities while offering control over management.
The UAE's favorable tax environment, with no income or capital gains tax, enhances tax efficiency, making it appealing for both residents and non-residents. Confidentiality is a key advantage, ensuring private management of assets. Trusts and foundations also simplify wealth transfer and succession planning, allowing seamless, controlled distribution of assets.
As a global financial hub, the UAE offers advanced financial services and strategic access to international markets, making it an attractive jurisdiction for wealth preservation and management.
Get Started with QUTAB
Protect your legacy and secure your future with QUTAB’s Trust and Foundation services in Dubai. Contact us today to schedule a consultation and discover how we can help you achieve your wealth management goals.
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Role of the Settlor
While the settlor plays a key role by contributing assets to establish the trust, this role generally has minimal ongoing tax implications in the UAE. Initial contributions can be nominal, with family members or others often adding assets over time.
However, if the settlor resides in a country that imposes income or gift taxes, their contributions to the trust may trigger tax liabilities. Settlors should consult with tax advisors to fully understand potential tax consequences when transferring assets into a trust.
Importance of the Trustee
The residency of the trustee plays a critical role in determining the tax residency of the trust. Similar to corporations, where the management is located can influence the trust's tax obligations.
In some cases, multiple jurisdictions may claim the trust as a resident, potentially creating conflicts. Tax treaties between countries can mitigate such issues, ensuring clearer tax obligations for both the trustee and the trust.
Our Services
Initial Assessment
A comprehensive analysis of the client’s financial situation, family dynamics, and long-term objectives is conducted to recommend the most suitable structure.
Customized Solutions
Personalized trust or foundation structures are designed to meet specific goals, whether for asset protection, succession planning, or philanthropy.
Legal Documentation
All necessary legal documents are drafted to ensure compliance with UAE regulations and international standards.
Regulation Compliance
The entire process with the relevant authorities is managed, guaranteeing full compliance with local laws.
Tax & Legal Advisory
Expert guidance is provided on tax planning, legal matters, and cross-border issues, ensuring the efficient and effective operation of the trust or foundation.
Succession Planning
Strategic advice is offered on succession planning to facilitate the smooth transfer of wealth and business interests to future generations.
Documents Required for Trusts & Foundations
| Document | Trusts | Foundations |
|---|---|---|
| Legal Document | Trust Deed outlining the terms and conditions of the trust. | Foundation Charter defining the foundation’s purpose, governance, and structure. |
| Identification | Settlor Identification: Copy of the settlor's passport or identification. | Founder Identification: Identification documents of the founder(s). |
| Trustee Information | Details and identification of the appointed trustee(s). | Board of Directors: Information and identification for board members or trustees. |
| Beneficiary Details | Information on beneficiaries, including identification documents. | Bylaws: Internal rules governing the foundation’s operations. |
| Asset List | Comprehensive list of assets being transferred into the trust. | Asset Contribution: Documentation of assets being contributed to the foundation. |
| Legal Compliance | Any additional documentation required by local authorities. | Any additional documentation required by local authorities. |
Why Choose QUTAB?
QUTAB is committed to providing personalized and professional services that empower you to protect and grow your wealth with confidence. Our deep understanding of Dubai’s legal and financial landscape, combined with our expertise in trust and foundation services, makes us your ideal partner in wealth management.
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