Offshore foundations are often used as a suitable alternative to which similar type of arrangement?

Offshore foundations are often used as a suitable alternative to which similar type of arrangement?
A . Limited liability partnerships
B . Credit unions
C . Trusts
D . SICAVs

View Answer

Answer: C

Explanation:

Offshore foundations are often considered alternatives to trusts, as both are used for wealth structuring, asset protection, and estate planning. However, unlike trusts, foundations are independent legal entities and can provide greater control to the founder.

Limited liability partnerships (A): LLPs are business entities, not typically used for wealth management.

Credit unions (B): These are financial cooperatives, unrelated to wealth structuring.

SICAVs (D): SICAVs are investment funds, not wealth-structuring vehicles.

Reference: International Certificate in Wealth & Investment Management: Comparison of trusts and offshore foundations in wealth management.

Legal structures and their applications in estate and tax planning.