Foundations are rarely used in Estate planning.
Foundations are only permitted for ‘fines de interés general’ such as the protection of human rights, or for the benefit of victims of terrorism, or to promote scientific sporting or cultural interests etc : Foundations cannot be formed for the principal benefit of the Founder its patrons or their spouses or family members. Foreign private foundations do not have a clear status. They tend to be treated as taxable corporations if they are formed as a separate legal entity: otherwise the ‘Trustees’ may be treated as taxable individuals. Difficulties arise in securing recognition of the charitable status of foreign charities.
Please note: The information contained in these pages is given without charge and without responsibility. It is not a substitute for proper professional advice which we shall be happy to give if so instructed.
