FOUNDATIONS
Foundations are quickly gaining momentum as an effective and efficient tool in estate planning. At IMS we are structured to provide all necessary guidance and expertise required to build a structure to suit client requirements.
FOUNDATIONS HAVE SEPARATE LEGAL PERSONALITY
Unlike trusts, Maltese Foundations are granted separate legal personality. This is a fundamental concept as this means that the assets (and liabilities) are owned by the Foundation and such assets (and liabilities) are separate and distinct from that of any other person.
PRIVATE FOUNDATIONS
A private foundation is one, which is established for the private benefit of one or more persons or of a class of persons.
RIGHTS OF THE FOUNDER, BENEFICIARIES
The founder of a foundation may also be a beneficiary and if so opted they may freely amend the deed and substitute, add or remove beneficiaries. A founder may be appointed as administrator of a fund, or alternatively may exercise supervision over the administration. A founder may also be a beneficiary of the foundation. One of the salient features of Maltese Law is that beneficiaries of Maltese Foundations are granted rights by law. Amongst the rights afforded to the beneficiaries there is the right to information as well as a right to confidentiality.
REGISTERATION OF FOUNDATIONS
A Foundation is to be registered within a three-month period from its creation. However, the requirement of registration does not eliminate the privacy element as certain information may be withheld to safeguard the underlying interests.
FOUNDATION ADMINISTRATORS
The law does not provide for any specific qualifications for a person to be appointed as administrator of a Foundation. Juridical persons (companies) may also be administrators of a foundation may be provided they have at least three directors. However, administrators of foundations are to be registered with, and approved by the MFSA.
CHARITY FOUNDATIONS
A Foundation may also for the fulfillment of a specified purpose – a purpose foundation ie one which established exclusively for a charitable, philanthropic or other social purpose or as a non-profit organization.
FOREIGN FOUNDATIONS
Foreign foundations having legal personality under the laws by which they are constituted shall also be recognized as legal persons for all purposes of Maltese law.
For further information, kindly contact us and we will be happy to assist you.
