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The Fund is a collection of assets, united by a goal determined by the constituent contract (the charter of the fund) and endowed with legal personality by creating a legal entity. The foundation is established by an act of foundation (Foundation Deed), which can also be a contract. According to the document, the founder transfers (alienates) his own assets in favor of the fund, determines their purpose, which determines the main objective of the fund. The purpose of the fund is also fixed in the charter, which is a public document.

If necessary, the actual features of the functioning of the fund are defined in the internal statute, which has a confidential status.

The fund has no structure in its structure:

  • participants;
  • shareholders;
  • owners.

The fund's management body is the council of the fund specified in the memorandum of association. The board, as a rule, consists of three or more members. The founder can also be a member of the board, however, this carries some undesirable risks. The founder can send letters of recommendation character to the council with instructions on managing the fund. The founder of the foundation has the right to designate a protector, which can be introduced into its structure. The protector may have the authority to control and control, in particular with regard to authorizing the actions of the fund council or imposing a veto. Also, the founder can act as a protector.


  1. Protection of property from raiding
    When using the foundation, the founder legally distances himself from his property, as a result of which he loses the rights to assets that may be subject to infringement by the raiders.
  2. Protection of property from claims of creditors
    The property located in the fund can not be seized or recovered by the court according to the requirements presented to the founder of the fund.
  3. Protection of property from family members
    When the marriage is dissolved, the property is not subject to division, as belonging to the fund.
  4. Protection of beneficiaries from unreasonable use of funds
  5. Preservation and protection of property from the state.
    Protection of property from political, economic instability is ensured by its placement (legally) in stable jurisdictions with special legislation, which is adopted with a view to providing maximum protection to the assets of the fund.
  6. Optimization of taxation
    It is carried out by placing the fund in a low-tax jurisdiction. In some cases, exemption from taxation in connection with the public benefit of the fund is allowed.
  7. Creating an Alternative Method of Inheritance
    By founding the foundation, the founder receives the opportunity to avoid the requirement of legislation on mandatory inheritance and conflict of inheritance.
  8. Ensuring the confidentiality of the actual ownership of property
    At the foundation of the fund, the name and information about its founder is not entered in the registers and appears only in the trust agreement. The name of the owner is known only to Trustee.

Thus, the fund can become an effective tool both in business activities and in terms of planning its own assets.


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