Structured properly, a UAE Family Trust or Foundation acts as a defensive shield for your assets, isolating them from business risks, creditor claims, and fragmented inheritance disputes. G12 provides technical advisory on the formation of trusts in DIFC, ADGM, and RAK ICC, ensuring your structure aligns with UAE Corporate Tax regulations and long-term succession goals.
Transferring wealth to future generations requires more than a will; it demands a legal entity that ensures continuity. Without a formalized structure, family assets are subject to Sharia inheritance procedures and potential litigation.A Family Trust offers a distinct legal arrangement where assets are held for the benefit of specific individuals, yet controlled by a defined governance protocol. This ensures:
A trust is not a commercial company; it is a fiduciary arrangement recognized under Common Law jurisdictions in the UAE (DIFC and ADGM).
Establishing a trust is a legal workflow requiring precise documentation to ensure validity before the courts and tax authorities.
G12 drafts the Trust Deed and Letter of Wishes. These documents dictate the rules of the trust, including investment powers, distribution triggers, and contingency clauses for unforeseen events.
The Settlor must transfer legal ownership of assets to the Trustee. We handle the complex compliance regarding the re-titling of real estate, share transfer forms, and bank account re-assignments to ensure true separation of ownership.
We do not provide generic templates. Our approach integrates legal structuring with tax reality.
Ensure your family assets withstand regulatory scrutiny and inheritance complexities. G12 provides precise, tax-compliant advisory for Trust and Foundation formation across the UAE’s primary financial jurisdictions.
Generally, Trusts and Foundations are considered juridical persons and are subject to the 9% Corporate Tax. However, they can apply for an exemption if they are used solely for the benefit of natural persons and do not conduct commercial business. G12 assists in filing these exemption requests.
Yes, once assets are legally transferred to the trust, they no longer belong to the Settlor. Consequently, they are generally protected from the Settlor’s personal creditors, provided the transfer was not made with fraudulent intent to defeat creditors.