Definition of Statutory Foundation:
A Statutory Foundation is a legal entity that can hold any type of assets and constitutes capital separate from the Founder.
The Wyoming Statutory Foundation is capable of doing business in its own name, similar to a corporation, partnership or LLC and can serve both charitable purposes and private interests (such as in the case of estate protection or succession).
But what makes a Statutory Foundation in the State of Wyoming different?
Let's see:
1) Confidentiality:
There is a much higher degree of confidentiality than private foundations in Panama, for example.
There is no need to publicly record the name of the Founder, Board of Directors, Protector or Beneficiary names.
The United States does not participate in the Automatic Exchange of Information, known as CRS (“Common Reporting Standards”), which are the annual reports required by the (countries) signatories to the agreement, and which annually contain information on founders, protectors, beneficiaries and assets . Wyoming courts will treat any dispute confidentially.
In addition, there is flexibility to appoint individuals trusted by the founder as protectors or board members, without them being reported for the purposes of automatic exchange of information as a controlling person (as is the case in other countries that are signatories to the AEOI agreements, such as Liechtenstein, Panama, Bahamas, Nevis, Holland, etc.).
2) Limited Liability:
Trustees and Board members are protected from personal liability for acting on behalf of the foundation.
All assets, income, valuation or income of the Foundation are protected against claims by the Founder's creditors. Wyoming law will only protect the Founder's or third party's creditors if the transfer of property to a Foundation constitutes a fraudulent act against them.
3) Flexibility to meet the interests of the founder or beneficiaries:
The operating agreement “Operating Agreement” may provide for the distribution of foundation property to one or more beneficiaries. However, no beneficiary shall have any right, interest or claim to ownership of the foundation unless such right or interest arises by express terms in the operating agreement.
The operating agreement may provide that the foundation retains effective ownership of any proceeds or appreciation thereof until it is distributed to a beneficiary.
Subject to the articles of incorporation and the operating agreement, a beneficial interest in a foundation is transferable.
Contact us to learn how a State of Wyoming Statutory Foundation (WYSF) may apply to you or your clients.
