Trusts and foundations both protect and pass on wealth, but they work differently. Here's how to think about which structure fits an internationally mobile family.
As families grow wealthier and more international, a simple will often stops being enough. Two structures come up repeatedly for control, protection and succession: the trust and the foundation. They can achieve similar goals, but they are not the same thing.
What is a trust?
A trust is a relationship: you (the settlor) transfer assets to trustees, who hold and manage them for your beneficiaries under the terms you set. It is a long-established common-law tool, valued for flexibility, asset protection and controlled succession across generations.
What is a foundation?
A foundation is a separate legal entity — closer to a company in form — that owns assets in its own name and is run by a council according to its charter and by-laws. Foundations are often more intuitive for families from civil-law or Sharia backgrounds, and the UAE now offers its own foundation regimes.
Which one is right for you?
- Trust — often preferred for flexibility and established common-law protection
- Foundation — often preferred where a distinct legal entity, local presence, or civil-law familiarity matters
- Both — the right answer depends on your jurisdictions, family, assets and goals, not on a rule of thumb
The structure is only as good as its design and the way it fits your wider plan. This is general information, not legal or tax advice; the right choice should be made with proper cross-border guidance.
This article is illustrative content provided for information only and does not constitute financial, tax or legal advice. Tax rules and thresholds change and depend on individual circumstances and jurisdiction. Always seek personalised professional advice.