Private Foundations

Meridien International assists clients in establishing private foundations as long-term structures for asset protection, succession planning, and philanthropic objectives. A private foundation offers a robust and flexible solution for individuals and families seeking to preserve and control wealth across generations, while maintaining confidentiality and legal certainty.

What is a Private Foundation?

A private foundation is an independent legal entity that holds and manages assets for specific purposes defined by the founder. These purposes may be private, such as wealth preservation for family members, or public, such as charitable donations. Unlike trusts, foundations have legal personality, no shareholders, and are governed by a council or board in accordance with a charter and internal rules.

Particularly well-suited to civil law jurisdictions, foundations are recognised by statute, offering clarity and enforceability where common law trusts may be unfamiliar or not recognised.

Types of Assets Held in a Private Foundation

A private foundation may hold a wide range of asset classes, including:

• Cash and financial instruments
• Listed and private equity shares
• Real estate holdings and investment properties
• Fine art, collectibles, and luxury goods
• Life insurance policies (as owner and/or beneficiary)
• Intellectual property (trademarks, patents, royalties)
• Business interests, including holding companies

Such structures allow for centralised, long-term management of diverse global assets under one compliant, neutral legal framework.

Suitability of Private Foundations

Private foundations are highly suitable for:

• High-net-worth individuals and families focused on long-term succession planning
• Entrepreneurs seeking to separate ownership and control of family businesses
• International families looking for continuity across borders
• Philanthropists aiming to institutionalise charitable activity
• Clients in civil law countries, where trusts lack legal certainty or recognition

They also offer advantages in terms of estate consolidation, prevention of forced heirship, and long-term governance.

Top Jurisdictions for Private Foundations

• Liechtenstein
  Renowned for its mature and sophisticated private foundation framework, Liechtenstein offers strong asset protection, confidentiality, and legal stability. It is one of Europe’s leading jurisdictions for private wealth structuring.
• Luxembourg
  Since 2016, Luxembourg offers private foundations under its Fondation Patrimoniale law. These entities provide excellent options for asset protection, estate planning, and family governance within a stable, EU-compliant jurisdiction known for its professional services and financial infrastructure.
• Monaco
  Monaco recognises private foundations and is favoured by ultra-high-net-worth individuals seeking prestige, legal certainty, and favourable tax conditions. It offers a discreet environment with a strong regulatory framework.
• Netherlands
  The Dutch Stichting (foundation) is a flexible vehicle commonly used for holding assets, controlling companies, and philanthropic activities. Its well-developed legal system offers transparency combined with privacy and efficient governance.

Private foundations represent a powerful tool for wealth preservation, succession planning, and philanthropy, offering tailored solutions to meet the complex needs of international families and individuals. Choosing the right jurisdiction is essential to maximise legal certainty, tax efficiency, and asset protection. Our expertise can guide you in selecting and establishing the ideal private foundation structure to safeguard your legacy across generations.