Jersey Foundations

They are very flexible in terms of their structure and internal arrangements as the
Law permits a substantial degree of bespoke adaptation

They have legal personality and may contract or sue in their own name and the
doctrine of ultra vires does not apply to Foundations

No fiduciary duties are owed to beneficiaries, the beneficiaries have no interest in the Foundation’s assets and Foundations are not bound by trusts or corporate case law. They need not have beneficiaries and can be established for a beneficial (particularly charitable/philanthropic) purpose

The Council members have duties that are similar (albeit not identical) to that in corporate law but those duties are owed to the Foundation itself (not beneficiaries). Constitutional documents can also provide for exoneration of Council members save where liability arises out of fraud, wilful misconduct or gross negligence

A significant degree of control and involvement can be retained as an alternative to a trust

As foundations have their origins in civil law jurisdictions, they can be more familiar to those operating in such jurisdictions, particularly continental Europe

Foundations have adopted certain useful corporate aspects such as the ability to migrate, continue, merge and wind up as well has having an indefinite existence if required (i.e. no fixed term). A Jersey company can also convert to a Foundation

The founder can restrict the flow of information regarding the Foundation
and its property to beneficiaries. As they are private structures and although they require registration, only a very limited amount of information needs to be
placed in the public domain (with only the limited charter being filed, the operative regulations remaining private – distinct from companies where memorandum and articles of association must be filed publicly) although a Foundation has a level of visibility / public record which can be required commercially

Where the assets include planes, boats, volatile assets or certain types of family businesses, sometimes they do not sit comfortably within normal trusts law constraints and parameters, including traditional trustees’ duties or the
Foundation can assist with managing issues such as competing family interests with less risk of challenge by beneficiaries

The law governing foundations has been drafted to prevent foreign law being used
to circumvent Jersey law determination on matters relating to Jersey Foundations

A foundation has a guardian to ensure the Council carries out its functions with related potential sanctions