Setting up family foundations in Liechtenstein

How to set up a family foundation in Liechtenstein

Want to consolidate and manage family assets from a single platform? Then the ideal solution is to establish a Liechtenstein family fund, with the help of which it will be possible to carry out comfortable and efficient asset management without risks and financial losses. But in order to register a fund, it is necessary to close many legal issues and in this process one cannot do without the help of a qualified specialist. Why? Find out in today's guide. For how Crystal Tax sets up a trust or trust fund turnkey, including the Ukrainian tax side, see the service page.

Family Foundation: Features and Benefits

A fund has a main feature: it is a legal entity that can have rights and obligations, open bank accounts and act as a party to the process and manage assets. The fund has a charter, a certificate of registration, but there are no shareholders and participants.

But the most amazing thing is that the family trust can exist forever as a dynastic trust. Its work is regulated only by the Law on Persons and Organizations. Classically, Liechtenstein makes a family foundation irrevocable: when the circle of beneficiaries is clearly indicated and they transfer assets to the foundation, the founder can no longer control or demand them back. So the family foundation represents the owner of the property.

It is worth noting that the fund is not engaged in commerce, therefore, with proper asset management, it pays only a minimum tax annually. But how exactly to carry out management and explains a qualified lawyer. After all, the family fund allows you to realize many tasks and desires.

What are the benefits of creating a family foundation in Liechtenstein

We will not deny that sometimes the fund acts as the ultimate holding company. But usually they are needed for social, charitable or family tasks. However, the goals of the foundation are affected by the tasks outlined in the charter and internal regulations.

• When the fund is family, it is established to protect assets, preserve family capital and increase it.
• But it cannot be used to conduct commercial activities and make a profit. However, this rule does not apply to companies owned by the fund.
• If necessary, the fund may create additional subsidiaries for investment and commercial activities, which will benefit the fund itself.

All information about the beneficiaries and their assets is completely protected from transfer to third parties, so this is the safest and most effective way to preserve and increase family assets. But before founding it, you should know what details to take into account and what steps to take for the proper registration and successful functioning of the fund.

How family foundations are created in Liechtenstein

There are many characteristics to consider when establishing a foundation:

• Structure of the fund.
• Types and scope of assets.
• Features of the charter and related documents.
• Tax residency of the beneficiaries.

The registration process is not quick, since each situation is individual and requires an appropriate approach. You can count on it if you contact the CRYSTAL TAX company. Here you will get the help and support of a whole team of experienced lawyers and financiers who will select the best format for your activity and explain the rules for effective fund management. And although the cost of services depends on the individual situation, you will be pleasantly surprised by its correspondence to the quality of support received.

In addition, we will save you time, nerves and effort, because for the registration of the fund there is no need to involve you in the bureaucratic process, which you can spend on more enjoyable activities. And it is always better to entrust the solution of the issue to people who understand it. These are exactly what you expect at CRYSTAL TAX. Sign up for a consultation and see for yourself!