Globe Foundation

The two main aspects of estate planning are asset protection and succession planning.

Asset protection

This form of financial planning is designed to protect assets from challenge by outside parties. Foundation laws provide very effective protection from challenge. Some jurisdictions allow only a relatively short time, after the date on which assets are placed into the foundation, during which they will even consider a legal challenge.

This type of protection is particularly appropriate to those whose area of work can be subject to penal litigation.

Some foundation establising jurisdictions don’t even recognise foreign tax laws as a legitimate reason for challenging foundation assets.

Succession planning

Succession planning ensures that your estate passes only to your intended beneficiaries.

When assets are placed into a foundation, the foundation becomes the legal owner, thereby avoiding the time consuming and sometimes expensive legal process of probate that must usually be followed in most countries when a person dies.

Some countries, like France, have very strict forced heirship laws that dictate exactly how the estate of a deceased person must be distributed. Panama and some other foundation establishing jurisdictions do not recognise these laws as a legitimate basis for bringing a challenge against the assets of a foundation.

Foundations can run indefinitely and since foundation assets are owned by the foundation, no Inheritance Tax liability arises when any party to the foundation dies, making them a very effective vehicle for holding financial legacies.