Foundations & Trusts Services in UAE

What are Trusts and Foundations?

In a world where wealth preservation and succession planning are foremost, establishing a trust or foundation can provide the stability and control needed to protect your assets and ensure they are managed according to your wishes. At RadiantBiz, we offer comprehensive Trust and Foundation services in Dubai, tailored to meet the unique needs of high-net-worth individuals, families, and businesses.

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What are Trusts and Foundations?

Trusts and Foundations are legal structures that enable individuals and families to protect, manage, and transfer their wealth efficiently. While both serve similar purposes, they differ in structure and governance:

Trust

A trust is a legal arrangement where one party (the settlor) transfers assets to another party (the trustee) to be managed for the benefit of specific individuals or entities (the beneficiaries). Trusts are highly flexible, allowing for customized terms that can address a variety of personal, financial, and charitable goals.

Foundation

A foundation is an independent legal entity that holds assets for a specific purpose, typically philanthropic or family-oriented. Unlike a trust, a foundation is a self-governing organization with its own legal personality, making it an ideal structure for those looking to maintain control over asset management and distribution.

Why Establish a Trust or Foundation in Dubai?

Dubai’s robust legal framework, strategic location, and favorable tax environment make it an attractive jurisdiction for establishing trusts and foundations. The UAE’s trust and foundation laws offer numerous benefits, including asset protection, confidentiality, and flexibility in wealth management.

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Protect your legacy and secure your future with RadiantBiz’s Trust and Foundation services in Dubai. Contact us today to schedule a consultation and discover how we can help you achieve your wealth management goals.

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Key Advantages of Setting Up a Trust or Foundation in Dubai

1. Foundation

  Privacy: Dubai’s legal system emphasizes confidentiality, ensuring that your assets and financial arrangements remain private.
Shielding Wealth: Trusts and foundations provide a robust legal framework to protect assets from creditors, legal disputes, and other risks, ensuring long-term preservation.

2. Succession Planning

Control Over Wealth Distribution: Trusts and foundations allow you to dictate how and when your assets will be distributed to beneficiaries, ensuring your wishes are respected.
Generational Wealth Transfer: These structures facilitate the seamless transfer of wealth across generations, minimizing potential disputes and ensuring family harmony.

3. Tax Efficiency

Favorable Tax Regime: Dubai offers a tax-efficient environment with no personal income tax, capital gains tax, or inheritance tax, making it an ideal jurisdiction for wealth management.
 Global Tax Planning: Trusts and foundations can be structured to optimize your global tax position, helping you minimize tax liabilities while complying with international regulations.

4. Philanthropy and Charitable Giving

Structured Giving: Foundations are particularly well-suited for charitable endeavors, allowing you to create a lasting legacy through structured and strategic philanthropy.
 Impactful Contributions: With a foundation, you can make a significant impact on causes you care about, with the flexibility to adapt your giving strategy over time.

5. Business Continuity

Continuity Planning: For business owners, trusts and foundations can ensure the continuity of your business operations in the event of unforeseen circumstances, safeguarding your company’s future.
 Centralized Management: These structures provide a centralized approach to managing family businesses, investments, and other assets, streamlining decision-making processes.

How Is a Trust Taxed in the UAE?

In the UAE, the taxation of trusts is relatively straightforward compared to other jurisdictions. Trusts themselves are not subject to income tax in the UAE. 

Role of the Settlor
Initial Contributions: While the settlor initiates the trust by contributing assets, this role is often less significant in ongoing tax matters. Initial contributions might be nominal, with additional assets often added later by family members or other contributors.
Tax Implications for Settlor: If the settlor resides in a jurisdiction with income or gift taxes, their contributions to the trust may trigger taxable events. It’s important for settlors to consult with tax advisors before transferring assets to a trust to understand any potential tax implications.
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Importance of the Trustee
Determining Trust Residency: The residency of a trust for tax purposes is typically influenced by the residency of its trustee(s). Just as a corporation's tax residency is determined by where its management is based, a trust’s residency is often determined by where its trustee(s) reside.
Jurisdictional Conflicts: This can sometimes lead to conflicts between jurisdictions that claim the trust as a resident. However, tax treaties between countries can help resolve such disputes and clarify tax obligations.
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RadiantBiz Trust & Foundation Services

At RadiantBiz, we offer end-to-end services for establishing and managing trusts and foundations in Dubai. Our team of experts works closely with you to understand your unique needs and objectives, crafting tailored solutions that align with your long-term goals.

Our Services Include

Importance of the Trustee
01
Needs Assessment

We begin with a thorough analysis of your financial situation, family dynamics, and long-term objectives to determine the most suitable structure for your needs.

02
Customized Solutions

Based on our assessment, we design a trust or foundation structure that meets your specific requirements, whether for asset protection, succession planning, or philanthropy.

Establishment of Trusts & Foundations
01
Legal Documentation

We handle the drafting of all necessary legal documents, ensuring that your trust or foundation complies with UAE regulations and international standards.

02
Registration & Compliance

Our team manages the registration process with the relevant authorities, ensuring your structure is fully compliant with local laws.

Advisory & Support Services
01
Tax & Legal Advisory

Our experts offer guidance on tax planning, legal matters, and cross-border issues, ensuring your trust or foundation operates efficiently and effectively.

02
Succession Planning

We provide strategic advice on succession planning, helping you manage the transfer of wealth and business interests to future generations.

Why Choose RadiantBiz?

RadiantBiz is committed to providing personalized and professional services that empower you to protect and grow your wealth with confidence. Our deep understanding of Dubai’s legal and financial landscape, combined with our expertise in trust and foundation services, makes us your ideal partner in wealth management.

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Frequently Asked Questions

What is the primary difference between a trust and a foundation in the UAE?
What are the benefits of setting up a foundation in the UAE?
What is the role of a foundation trust?
Are there tax advantages to setting up an SPV in Dubai?
 How is the structure of a foundation in the UAE organized?
What is a DIFC Foundation?
How can one register a foundation in the UAE?