What are the main differences between Nevis Trusts and Nevis Foundations and which one to choose

The importance of asset protection goes beyond a single financial plan. Instead, it applies to every strategy that contemplates wealth management and growth. When talking about foundations, trust characteristics, and legal aspects of each structure we should keep in mind the person's goals, preferences, and possibilities. 

Nevis asset protection is stronger than in most countries since it provides both tools. So, we invite the readers to familiarize themselves with the advantages, disadvantages, and main features of trusts and foundations. 

Nevis asset protection: trust

With a trust you'll have an easy time because the registration and administration are simpler. The Mundo team can help you open a Nevis asset protection trust without having to send the original consent documents or apostilles. This is considerably convenient since it helps save time and money.

Settlors will find an increased freedom level when it comes to establishing their goals. Moreover, this can be applied to different kinds of trusts like charitable, discretionary, and spendthrift, each with its own trust characteristics. A trust is formed by three parties: the settlor, the trustee, and the beneficiaries and they have their particular function, responsibility, and benefits. Learn more about the trust characteristics and elements in this article.

Nevis asset protection trust: practical uses

The main reason to form a trust is to transfer those assets that the person is trying to protect. Thanks to its strong features, the trust is ideal for those who want to pass on their legacy to future generations while maintaining control. Succession and inheritance thus become much smoother.

Another good reason to form a trust is the possibility of saving on taxes as the Nevis asset protection trust involves advantages like no capital gains and no income or inheritance tax.

Foundation, trust in the form of a legal entity

While foundations also serve asset protection purposes, they have a key difference that lies in the structure. Thus, the multiform foundation is an independent entity. On the other hand, trusts are an agreement between the settler and trustee.

Being a legal entity, a foundation can sign contracts on its behalf, sue or be sued, and own assets.

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They provide a fair level of flexibility when it comes to decision-making, governance, and management. Instead of a trustee safekeeping the assets, the foundation in itself is the owner and guardian of the assets and it's represented by the management board. This creates the need for roles such as a member of the secretary of the board or member of the supervisory board, which can be assigned when necessary.

Foundation, trust, and what they have in common

Both the foundation and the trust are based on separating legal ownership from the original owner. This is in fact the essence of asset protection as we've discussed in previous articles. Hence, they are both great means to protect a family's or a person's wealth.

Moreover, they both offer a high privacy level and advanced confidentiality since the details of the members (which can be beneficiaries, founders, or settlers depending on the structure), are not stated in public records.

Foundation, trust, and their differences

As we mentioned above, the foundation is a legal person while the trust is an agreement between two parties. In other words, these are two completely different structures although they serve similar purposes and can be used similarly.

Foundation, trust, and their disadvantages

In general, Nevis trusts demand higher ongoing and upfront costs. Besides, they require professional guidance for an optimal setup. Foreign trusts have extra challenges like the necessity of receiving updates on the regulations, the burden of overseeing things remotely, and establishing smooth communication.

The multiform foundation in Nevis is more demanding as it requires more detailed documentation like notarized consent schedules and original signed duplicates, all of which have to be sent to Nevis physically. Moreover, the foundations lack a long history of precedents which can result in uncertainty in the case of legal issues. 

Disclaimer: This article presents general foundation and trust characteristics in Nevis. However, this article should not be considered legal advice. Before establishing a trust or a foundation, make sure to assess the best options together with a certified professional. 

Why choose Nevis asset protection 

No one knows what the future will bring, and this is why a protective financial structure is essential, especially these days. Whether you have a couple of thousand dollars or a couple of millions, it doesn’t make a difference as asset protection is always worth every bit of your effort. 

Words like foundation, trust, and wealth management are to be part of your daily vocabulary if you want to succeed in the financial world. Remember that in one day you can lose what has taken you years to achieve, and this is something to keep in mind from the very beginning of your journey toward financial freedom. 

With Nevis asset protection you can choose a trust or a multiform foundation and access a protective legal environment which can also bring you tax benefits. Contact the Mundo team and get to know more about these opportunities. 

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