Why Private Interest Foundations Beat Trusts for Wealth Planning

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Oct 16, 2025

Discover the intriguing world of Private Interest Foundations, a powerful asset protection tool that combines the benefits of both corporations and trusts. Learn about the unique roles of founders, councils, and beneficiaries, and how founders can participate in governance without tax complications. Explore the advantages of civil law jurisdictions like Liechtenstein and Panama for enhanced asset protection. Plus, find out the diverse assets a foundation can hold, from stocks to global banking relationships.

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INSIGHT

Foundation Is A Corporation-Plus-Trust

A private interest foundation (PIF) combines a corporation's legal personality with a trust's estate planning role.
It exists as its own legal entity rather than merely an agreement, giving it greater structural robustness.

ADVICE

Set Up Roles Deliberately

Establish a PIF with a founder, foundational council, and beneficiaries to mirror settlor, board, and trustees.
If you are the founder, you can sit on the council without triggering the trust-related tax issues common in U.S. grantor trusts.

INSIGHT

Founder Participation Avoids Grantor Trust Pitfalls

Unlike trusts that can become grantor trusts when the settlor is involved, PIFs allow founder participation with clearer tax and governance boundaries.
This corporate-like clarity reduces some legal and tax complications tied to self-trusteed trusts.

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Javier is here to break down Private Interest Foundations, one of the most powerful yet often overlooked asset protection tools. Most people know about trusts, but a Private Interest Foundation offers something more: a hybrid structure with the legal personality of a corporation and the asset protection and estate planning benefits of a trust. This episode is for you if you're looking for something more robust and globally recognised to protect your wealth!

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