Comparison Between A Will, Trust and Foundation
WILL | TRUST | FOUNDATION | |
Purpose | For estate planning | For assets protection, estate and tax planning | For assets protection, estate and tax planning and succession planning |
Maintenance Cost | Low fee (fixed) | Varies depends on assets value | Relative low (fixed) |
Registration | Optional | Optional | Registration is required |
Legal Structure | • Effective after death • Need to go through probate process |
• Effective after Trust instrument created • Trustee to execute according to Letter of Wishes |
• Effective when the Foundation is registered • Foundation can be dissolved and assets distributed to beneficiaries and to continue with the legacy |
Ownership of Property | Assets that is under the name of the Testator | Managed by Trustee and Settlor has minimal power | Founder has reserved right and control over the management of the Foundation |
Creditor / Forced Heirship Proof | No creditor / forced heirship proof | Yes, after 5 years | Yes, after 2 years |
Documentation | Will or other legal instrument | Trust Deed | Charter and Articles |
Duration | From the time the Will is filed with the Court | May have limited or perpetual existence | May have limited or perpetual existence |
Rights of Beneficiary to Assets | Mere expectancy interest unless the property is distributed to Beneficiary | Mere expectancy interest unless the property is distributed to Beneficiary | No interest unless the property is distributed to Beneficiary |