Foundations can provide structuring tools that are similar to trusts, but which can be legally recognised in civil law jurisdictions. They can provide a solution for wealthy individuals, family businesses and entrepreneurs in emerging market countries operating under civil law.
Foundations have sufficient corporate characteristics to be recognised by civil law jurisdictions, but work like trusts for succession and estate planning. However, they are not a hybrid of companies and trusts, but a distinct legal concept.
Whilst Guernsey is a common law jurisdiction, its law accommodates civil law jurisdictions which do not recognise Trusts, but which are familiar with Foundations.