Liechtenstein Foundation vs Offshore Trust?

[justanotherguy]

Why would anyone choose Liechtenstein over Offshore.

Assuming obviously 2-5$M budget, which is a minimum for Liechtenstein.

Isn't it easier for tax authorities to determine that you are the actual "owner" of the foundation (comparing to some Cook Islands, where it's way harder)?

Thanks

 

[Martin Everson]

Why would anyone choose Liechtenstein over Offshore.

Perhaps someone wants a structure that is located in a EEA country. But no idea why in 2023 and also Liechtenstein Foundations are subject to tax.

Isn't it easier for tax authorities to determine that you are the actual "owner" of the foundation (comparing to some Cook Islands, where it's way harder)?

Not sure what you mean by "owner" as that's not how foundations work . Using a foundation to hide behind is not a good idea in 2023 but using it to protect your assets can be in some situations. Even if they know you are the founder or beneficiary whats the issue? Your tax affairs should be in order anyway if setting one up in 2023.

 

[Sols]

Neither a foundation nor a trust should be reliant on secrecy alone. In a worst case scenario, you should be able to sit down (together with your lawyer) at the tax office, have them look at everything, and not be able to get a dime out of you. If you've done that, your structure is sound.

TIEAs, CRS, FATCA, data leaks, whistleblowers, public/private registers — these things are eroding secrecy.

Nowadays, you don't set up an asset protection vehicle like a foundation or trust to hide money. You set it up so that your funds are safe from threats you have expected.

And as @Martin Everson said, there really isn't an "owner" in this context. There are different roles that serve different purposes.

 

[369]

Old thinking and reputation in my personal opinion.Price is extremly high and you have the risk that the foundation won't execute your or your families will in the end.
Also the amount of foundations in Liechtenstein has dramaticly decreased over the last 20 years.

 

[justanotherguy]

Nowadays, you don't set up an asset protection vehicle like a foundation or trust to hide money. You set it up so that your funds are safe from threats you have expected.

That's wise, Martin mentioned that as well.

Is it a good idea then to disclose all the assets of the trust...and the beneficiaries to local tax authority?

Basically keeping everything transparent, but still if anyone tries to get them (knowing the structure), still wouldn't.

Also the amount of foundations in Liechtenstein has dramaticly decreased over the last 20 years.

Makes sense, thanks

 

[Sols]

Is it a good idea then to disclose all the assets of the trust...and the beneficiaries to local tax authority?

You don't have to disclose more than necessary. Do what local law requires. Have a local lawyer help you with that.

But the goal should be that if the tax man gets his hands on all your documents, there's still nothing they can do/get.