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Foundations have several features which make them, in some cases, the
preferred option as an estate and inheritance planning tool, including:
- A foundation is a distinct legal entity which is important for “proper
law” questions and for providing easily recognisable liabilities
and accountabilities.
- The founder may reserve powers as provided by the charter.
- There is broad recognition for foundations by civil law countries.
- Assets placed within the foundation are owned solely by the foundations.
- There are no perpetuity period rules applicable to foundations,
which provides for continual, unending succession f that is desired
by the founder.
- A change in a foundation’s governing body does not change
the legal ownership of the foundation’s assets.
- It is liable to sue and be sued in it’s own name.
Arising from these advantages, the foundation’s council and its
officers are less exposed to possible legal liability. Further, the
reservation of powers to the founder is unlikely to lead a court to
consider a foundation structure as a sham.
The Bahamian Foundation, with its flexibility and unique advantages,
is an important tool for global advisors. Other Bahamian advantages
include:
- Usage for private, commercial and charitable purposes.
- Dispositions to the Bahamian Foundation benefit form the jurisdiction’s
strong and balanced asset protection law.
- There is no statutory requirement for an external audit unless
the foundation’s charter so provides.
- A nominee may serve as the founder.
- All officers, foundation council members and other supervisory
personnel benefit form statutory indemnification from all liabilities,
losses and expenses incurred by a foundation, provided they acted
honestly and in good faith.
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