In this article, we give a brief overview of the foundations of Guernsey and its role in the private sector. We are examining some of the issues that will be of interest to those wishing to establish a Guerniay Foundation, including issues of control and confidentiality. Foundations are a key part of our legal framework and a key reason for the entry into force of the "foundations" in the Guernsey Act to protect and preserve private and family wealth.
The Guernsey Foundation is an independent legal structure and not a hybrid of the two, but has many similarities with both types of foundation. It shares the registered status of a private company and the beneficiaries who may have access to the same assets and liabilities as of the company itself. This may appeal to people familiar with civil law and foundations, as many of these characteristics are common between these types of foundations. Endowments are not taxed in the same way as companies are taxed, i.e. tax revenues from income from a regulated company unless they are the result of a "regulated business activity" in Guernsey. However, they are taxed in the same way as a Guernsey company and on the basis of income from the company itself (e.g. profits).
Although it is possible to establish a foundation exclusively or partially for a specific purpose, the Foundation Act does not permit foundations to be established in order to incapacitate beneficiaries or to deprive them of the right as provided for in the Nevis Foundation Regulation. These entities may be consolidated, merged, converted, converted, or converted into the Nevis Multiform Foundation and retain their current legal status.
While a private foundation is limited to a maximum of one hundred years, the purpose of the foundation can be fulfilled for any purpose as long as it meets the requirements of the Foundation Regulation.
Under the Guernsey law mentioned above, the disenfranchised beneficiaries have no right to information about the Foundation at all. The law includes a firewall provision that all questions relating to a Guernsey Foundation must be decided in accordance with the Guernsey Law. If a beneficiary of a foundation has a legal economic interest in its assets, he may do so only on the condition that the founder has no interest in it, whether it was founded or endowed by him. As a result, the beneficiary is not entitled to information under the law, even if he or she has assets.
Guernsey foundations must appoint a resident agent in Guernsey Jersey if none of the Foundation officials are registered as trustees in Guernsey and they must have an individual resident of Guernsey at least a year older than the founder or founder and licensed in Guernsey. The resident agents must be Guernsey - licensed fiduciary residents in Guerney, but they may be an individual or a group of individuals, such as an employee of a foundation or a member of its board of directors. When the first agent establishes the identity of a beneficial owner in relation to the foundations, he or she must take appropriate steps to identify certain information that he or she must provide to the Registrar of Beneficial Ownership (GuERNSEY) prior to registering the Foundation. None of the Foundation's representatives have licensed guerrillas, so the residents "representatives have the right to view all information from the Foundation that is necessary to ensure that the Foundation complies with the Guernsey Law.
Guernsey foundations do not have to act as guardians if there are disenfranchised beneficiaries or if the foundation was established on the basis of a non-existent beneficial owner, as in the case of Guernsey law.
Guardianship is a mechanism to ensure that there are adequate supervision and accountability for those who benefit from the Foundation. Guernsey foundations must have a guardian if there are disenfranchised beneficiaries as guardians and a guardian if a foundation is established on the basis of a non-existent beneficial owner, as in the case of Guernsey law. If there is no trustee in Guernsey, then if the council or guardian is not a licensed trustee of Guernsey, the foundations may not keep their records and must require their resident agent to keep the foundation records in another country.
To establish a foundation in Guernsey, an application must be made to the Registrar of Guernsey, which is made by a trustee licensed in Guernsey and a trustee of the Guernsey Trust.
On January 9th, a fourth application from the Falcon Foundation was also received by the Guernsey Foundations Register. Managing partner William Simpson said: "We are pleased to announce that in 2012 we were one of the first Guernsey foundations to register under the Guernsey Act. Guernsey Foundation Law came into force in parallel to Jersey Foundation Law and our authors benefit from taking into account the experience of Jersey practitioners. According to the Guernsey Registrar, no other foundations have been registered until 00: 01 on 9 January.
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