A Cayman Islands foundation company can be an excellent choice for high-net-worth individuals seeking long-term wealth preservation and succession planning. This innovative structure combines features of a Cayman Islands company, a civil law foundation, and a common law trust.
By merging the legal personality of a company with the purpose-driven features of a trust, a foundation company offers customized governance, perpetual existence and smooth succession.
Features of Foundation Companies
- Flexible structures
- Power to appoint councils and advisors
- Adaptable governance model
- Versatility for private wealth and commercial uses
- Perpetual existence
These features make Foundation Companies attractive to families with multijurisdictional ties, individuals from civil law jurisdictions, and to those involved in digital asset projects or other high-risk investments.
Typical Uses of Foundation Companies
As Private Trust Companies (PTCs)
A foundation company can act as trustee for family trusts, allowing families to retain control by appointing family members to the board of the foundation company. Its perpetuity allows for continuity after the loss or withdrawal of any members, and the absence of shareholders eliminates related governance issues.
For Succession Planning and Asset Protection
Foundation companies are ideal for holding family business shares, especially for individuals and families with connections to civil law jurisdictions. Their bespoke bylaws and private governance documents provide privacy and protection from external claims, making them well suited for international families.
For Charitable and Investment Uses
In broader financial and business contexts, foundation companies can also serve as special purpose vehicles in financing or investment transactions and are increasingly used in crypto projects such as initial coin offerings.
Additionally, foundation companies can be structured for charitable purposes, exclusively or alongside private wealth goals, allowing founders to define the philanthropic objectives the foundation company should pursue.
Example Scenarios
Family Office Structure
A high-net-worth family with members in multiple countries wants to establish a family office to manage collective wealth, investments and succession planning.
A Cayman foundation company provides flexibility, control and continuity, by centralising global assets under one structure. Its perpetual nature avoids probate across jurisdictions, ensuring smooth and private transfer of control.
Digital Asset Management
An entrepreneur with significant digital assets, including cryptocurrencies and NFTs, seeks a secure and flexible structure.
A foundation company can directly own and manage digital assets, engage in smart contracts and interact with blockchain protocols under its own name. Custom governance frameworks allow founders to appoint advisors and directors to oversee assets according to defined strategies, ensuring robust control and operational continuity.
How We Can Help
Our Cayman Islands office has extensive experience supporting international clients with foundation companies and related structures. Our corporate, trust and regulatory teams combine detailed local knowledge with global expertise to deliver tailored solutions for wealth planning, asset protection and digital asset management.
For more information about Foundation Companies in Cayman Islands, get in touch with Jessica Samadi, Head of Trusts and Corporate, at jsamadi@tridenttrust.com.