Foundations serve as an alternative to trusts for succession planning. They operate as a hybrid between companies and trusts. Like companies, they are incorporated and function as distinct legal entities, but similar to trusts, they can designate beneficiaries and establish succession plans.
In the UAE, a foundation is the only vehicle available for succession planning. It offers a unique and effective solution for individuals seeking to secure their legacy and protect their assets.
The founder retains control over the assets during their lifetime and sets a robust plan for the assets after this time.
As the foundation owns the assets, no court proceedings or other legal processes are required upon the founder’s death.
Assets can remain within the foundation and do not have to be distributed straight away.
© 2024 Habib Bank AG Zurich
