When it comes to money, the ins and outs can be difficult for the average person to understand fully. There are plenty of different options, however. There are options like a foundation versus trust, and knowing the differences can help you choose what is right for you.
What is A Foundation?
A Foundation is a private, non-profit organization set up to help handle charitable services and projects. Any money spent toward a foundation can be donated by a person, a company, or a business. The money and assets used for a foundation belong to the foundation and do not belong to any one person.
In many cases, that money used or donated to a foundation can fund things like grants, projects, and scholarships. That being said, any money that is spent does have to go through the board of directors of the foundation. Foundations will face fewer regulations and are also going to offer plenty of tax benefits.
What is a Trust?
A trust is somewhat similar to a foundation, but there are some differences to keep in mind. A trust exists with the help of a trustee that does help to use money that has been given. A trust often has one person or persons named as beneficiaries who will benefit from the trust and the money held in there.
Trusts are not often separate entities, and they are not necessarily created to give money to one foundation. Offshore trusts are often used to help protect money from US judgments and can help to keep money beyond the legal reach of the courts. This is not something that every person needs, but with the help of a great trust company, you can get help and set up a trust. A great trust company will be able to help you set up a trust if you need one and can help better explain the entire process.
Though foundations and trusts are similar, they have plenty of differences. Taking the time to figure out what will work for you can make a big difference and help protect your money.