Trusts and Foundations

Trusts and Foundations

Trusts and foundations

Revocable trust — a trust that can be revoked (often used in inheritance, USA)

Irrevocable trust — an irrevocable trust (stronger protection, but you lose control)

Living trust — a trust created during one's lifetime (vs. testamentary, created in a will)

Testamentary trust — a trust created in a will, comes into effect after death

Discretionary trust — the trustee decides who gets how much (flexibility)

Fixed trust — fixed shares (son 60%, daughter 40%, everything is predetermined)

Unit trust — like a mutual fund, you hold units (shares) in a pool of assets

DIFC/ADGM Foundation — a foundation in a Dubai/Abu Dhabi free zone (no shareholders, autonomous)

Family foundation — a foundation for the family (charitable or for inheritance)

Charitable foundation — a charitable foundation (benefits, but mandatory charity)

Private trust company (PTC) — a company managing family trusts (acts as trustee, not a lawyer/bank)

Purpose trust — a trust without beneficiaries, just for a purpose (e.g., preserving a monument)