The cohesion of the family patrimony
The Foundation can be used as an instrument to prevent the dispersal of assets in the event of death of a member of the family. The Foundation becomes an instrument of succession planning to ensure the continuity of a patrimony or even a family business, and to maintain or enhance the long-term family wealth.
The continuity in the management of the company
the Foundation allows the separation of economic ownership of family property and the management of the family business. This is particularly useful when the founder has no children, if he considers that some of the heirs are not suitable or when they do not want to run the family business, but also to allow a family business to move towards a more open structure to attract new capital and talent.
The holding of assets
The Private Foundation may hold any type of assets and possessions (financial, real estate, insurance policy, movable, arts, etc.) around the globe, while retaining an overview of the decision.
The achievement of a given purpose with the family
the family patrimony can be assigned to a specific purpose such as to ensure that financial needs of a child or disabled parent or the funding of education of a child.
The preservation of the original vision of the founder
The Wealth Protection Plan, developed by Creatrust, is a package enabling families to set up a secure, robust plan for retirement and succession.
The protection of privacy and family safety
The Private Foundation can meet the legitimate needs of wealthy families to limit the visibility of their assets to ensure their safety and the safety of their children.
In recent years, Luxembourg has made considerable efforts to develop its financial market with a range of legal instruments which seek to respond to the legitimate needs of both private clients and professionals active in the financial sector of asset management. For the purpose of strengthening the position of the Luxembourg financial center as a center of excellence in Europe for the management and administration of family wealth, it is proposed to complete this range of instruments with a new vehicle to facilitate estate and succession structuring and planning.
As a result of this, the Luxembourg government issued a draft law on Foundation dated 22 july 2013, which introduces an orphan structure called the “Luxembourg Private Foundation”, as an addition to company and contractual solutions (e.g. fiduciary contracts, insurance contracts) commonly used in estate and succession structuring and planning. But these provisions have not come into effect since the bill has yet to be voted.
I worked a lot for my business, and forgot to think on how I will transmit all I have build to my spouse and children. We are very impressed by Creatrust’s professionalism and attention to detail in setting up our foundation. They walked us through the process and made sure all the necessary documentation was complete and accurate . We were pleased to have everything set up in time to reach our deadline.
We wanted to support and help our son, who is an emerging artist. The entire process to build a foundation looked quite complex for us. Thanks to the personal approach Creatrust ‘s team has with its clients, they made it smooth and easy for all of us.
We were very pleased with advice on how to plan our succession and with the timely manner the work was done. We appreciate all the time and effort to answer to our several questions. Very professional job.
Creatrust is a member of Allinial Global, an association of legally independent accounting and consulting firms.