The law and practice of private foundations

This training programme, the online version of the courses available through Legal & Financial Training presents to trust officers, bankers, lawyers, investment advisers and all concerned with asset planning, the basic and essentials of private foundations. Private foundations are growing in significance and importance as more jurisdictions introduce this vehicle by legislation. The demand for private foundations is destined to grow and place private foundations alongside trusts as vital asset planning vehicles in international private client financial planning.

This course, sponsored by The Foundation Society, is the only available training course available online and which aims to enable professional qualified persons and others experienced in the trust and asset planning industry to achieve a “Fit and Proper” status to advise on and administer private foundations.

The training course is on a module basis and comprises the following modules:

1. The nature and definition of private foundations: this module covers the development of private foundations out of the idea of public foundations which has existed for centuries; how it was adapted for private investment purposes; distinction between private foundations and trusts and between private foundations and companies. An outline of the procedures of how a private foundation is set up and an introduction to the various jurisdictions in which private foundations are now available.
2. The formation of private foundations in detail: following legislation in many common law jurisdictions, the principles devised in Liechtenstein since 1929 have been adopted and have given private foundations many of their characteristics. Model provisions. The presentation of an application for incorporation and the necessary constitutional documents are examined in detail with examples from the new jurisdictions and specimens examined so as to enable the participant to perceive the differences in practice between the foundation and trusts and companies.
3. The parties to a private foundation: the role and legal position of the various parties are examined in detail; the founder, the foundation council, the beneficiaries, the protector and other officers of the foundation are examined and their function described in detail with comparisons with the parties involved in companies and trusts to illustrate how private foundations are unique bodies.
4. Private foundations in the international field: the recognition of private foundations from jurisdiction to jurisdiction; the use of the term ‘foundation’ and the need to identify the precise nature of a foundation; expatriation and recognition of foreign jurisdictions.
5. Uses of private foundations: the use of reserve powers to the founder and how private foundations can resist foreign law, forced heirship etc.
6. Taxation of private foundations: the emerging principles, disclosure and private foundations under double taxation treaties.
7. Administration of private foundations: the function of the parties, the rights of the beneficiaries, supervision, if any, by the incorporating authority, accounts and rights of beneficiaries to information, ultimate control of foundations.
8. Current developments in foundations: a closer look at foundations compared with trusts; the use of foundations for private investment purposes in civil law countries where private foundations are not a unique structure; European foundations
9. Use of companies as foundations:
10. Foundations and money laundering:

This is an outline and the precise content may change from time to time due to developments but will cover all of the above as appropriate. For more information please contact us.