"It takes a great deal of boldness and a great deal of caution to make a great fortune; and when you have got it, it requires ten times as much wit to keep it"
Nathan Mayer Rothschild (1777-1836)
Asset Protection is about more than establishing a trust or a foundation. While we will most often make use of either or both in a combination in a structure, it is important to identify the risks and then establish a strategy to manage them and protect against them.
Your own personal goals will also have to be taken into consideration because the risks you would be facing if you are simply building up wealth to retire comfortably will be very different from the ones facing a dynasty trust destined to live for generations.
A trust can best be described as a legal arrangement (a legal form) through which the legal ownership of assets is transferred to the trustee in order to keep these assets for the benefit of others (the beneficiaries).
We see a great interest in Private Trust Companies which is set-up to manage one or several trusts from the same family and whereby family members may be on the Board and take part in the management.
In some jurisdictions a foundation is known as a family foundation and in others as a private foundation. Foundations can be used in a similar way to trusts, such as for wealth protection, privacy and wealth planning, but originally only existed in civil-law countries.
Nowadays, some common-law countries also offer the option of setting up foundations, for example, Jersey and Guernsey, in addition to the more established alternatives from Liechtenstein, St. Vincent and Panama.