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Private foundations vs. Trusts
Private Foundations and Trusts have clear differences. Private foundations
are based on Civil Law and they are constituted by means of a public legal
document and filed for registration, it is in fact, an existing legal entity,
where as, generally, a Trust is based on Common Law and are established by
means
of a
private contract that does need to be filed with any government agency, it
is not normally an existing legal entity, but a legal contract.
Another difference is that the Foundation Charter does not need to specify
the rights and obligations of every party involved that can be done by means
of a private and confidential document, while a Trust deed has to be very specific
and clear regarding the rights and obligations of the Trustee.
In a PIF the assets are placed to the Foundation's name at the time of the
transfer, while in a Trust, it is the Trustee who receives the assets to his
or her name.
