Family fund (discretionary) in Liechtenstein in 2021
Opening of a family fund in Liechtenstein in 2021 is relevant because the state is characterized by a high standard of living, a developed economy, and attractive conditions for the creation of such structure.
Features of opening
Family Foundation (discretionary) in Liechtenstein is a separate legal entity. It is used as a planning tool for the disposition of assets and the transfer of assets to support private individuals, beneficiaries. The most frequently opened funds are those of discretionary type, which combine the advantages of trust and corporation.
The foundation may be established by a natural person or a legal entity. The purpose of the creation is set by the owner independently. The founder has the right to draw up the name of the structure, will all objectives described in the statute. This document also includes the order of distribution of assets, peculiarities of adjustments, etc.
There are some requirements for the structure. It is necessary to have at least 2 board members - one of them must have the status of a licensed manager. The fund is managed by the Board, which is spelled out in the articles of association and is responsible for compliance. The founder can be a member of the Board.
The minimum initial capital is EUR 30,000, USD, or CHF. When establishing a foundation the share capital is required to be deposited in a provisional account with a local bank or trust company. The keeping of accounts is mandatory if the foundation operates a business.
The purposes and advantages of family funds
These organizations are set up to cover the expenses of the family. Payments to each of the members are controlled. The foundation may receive both assets and rights to property. Conditions are set by the founders regarding the use of assets.
- The fund can be managed on a trust basis;
- Management is carried out on anonymous terms;
- After the death of the founder, the existence of the fund is possible;
- Taxation is preferential.
To learn more about the nuances of opening a fund and the required documents, contact our experts at IT-OFFSHORE.