Frequently asked questions - wealth structuring, preservation and growth

Trusts and foundations are both valuable structuring tools, but they offer distinct benefits depending on the jurisdiction and your long-term goals. Trusts are widely used in common law jurisdictions and offer flexibility, privacy and discretion - ideal for asset protection and succession. Foundations, typically used in civil law jurisdictions, provide a more rigid framework, with a charter and council that guide decision-making.

At Praxis, we work with international families to identify the most appropriate vehicle, sometimes combining both structures for cross-border efficiency and continuity.

The right jurisdiction balances regulatory strength, confidentiality, tax efficiency and long-term stability. Key considerations include political and economic risk, reporting obligations (such as FATCA and CRS), and compliance with economic substance rules. For example, we often guide clients toward jurisdictions like Guernsey or Jersey for their combination of legal certainty, regulatory reputation, and tax-neutral frameworks. Selecting the right base can enhance both control and protection over time.

Strong governance is key. We help clients put in place clear oversight frameworks, such as defined director roles, protector powers, and decision protocols tailored to the family’s preferences. These structures allow for efficient administration and ensure continuity even as circumstances change.

 For example, clients often opt to establish a Private Trust Company (PTC) to retain a level of influence while ensuring fiduciary duties are upheld by professionals. Regular reviews help structures stay fit for purpose in evolving regulatory and family contexts.

Our structuring and administration services include proactive oversight and detailed reporting to meet global standards. We manage CRS and FATCA submissions, ensure substance requirements are met in applicable jurisdictions, and review client structures regularly to mitigate regulatory risk. For example, we’ve supported clients with multi-jurisdictional holdings restructure entities to avoid violating Controlled Foreign Company (CFC) rules while maintaining commercial purpose.

Family Investment Companies provide a tax-efficient and governance-friendly way to manage family wealth while retaining control. Unlike discretionary trusts, FICs enable defined share classes, allowing family members to participate in growth without transferring voting rights.

At Praxis, we’ve helped several international families use FICs as part of their intergenerational planning, particularly where there’s a desire to blend control with gradual wealth transfer. When combined with robust shareholder agreements and succession protocols, FICs can serve as a durable solution for complex, multi-jurisdictional estates.