Private purpose foundations: from a classic 'beneficiary principle' to modern legislative creativity?

The classic private foundations jurisdictions, such as Liechtenstein, Austria, and Panama, do not admit 'private purpose foundations' as a matter of principle, unless they are for the benefit of some ascertainable class of beneficiaries. Some analogies may be drawn to the traditional '...

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Bibliographic Details
Published in:Trusts & trustees 2013-07, Vol.19 (6), p.542-550
Main Author: Panico, P.
Format: Article
Language:English
Subjects:
Beneficiaries
Civil law
Foundations
Legislation
Traditions
Trusts
Validity
Online Access:Get full text
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Summary:The classic private foundations jurisdictions, such as Liechtenstein, Austria, and Panama, do not admit 'private purpose foundations' as a matter of principle, unless they are for the benefit of some ascertainable class of beneficiaries. Some analogies may be drawn to the traditional 'beneficiary principle' of English trusts law. Just as private purpose trusts have made their way into modern offshore trust legislation, many new private foundations jurisdictions expressly contemplate private purpose foundations. In some cases, the relevant statutes specifically uphold the 'self-serving purpose' of holding and administering assets that may facilitate the use of private foundations in certain financial arrangements.
ISSN:1363-1780
1752-2110
DOI:10.1093/tandt/ttt089