The concept of the trust since then has been introduced in various jurisdictions and has evolved enormously. Trusts were once regarded only as a tool available to the ultra-wealthy. While this was true for many decades, there has been a proliferation of use of these flexible and powerful planning tools. People have discovered that trusts can be useful for almost any socioeconomic class. A trust generally involves three parties ; the settlor or grantor (the original owner of the assets) sets up the trusts and commits to formally gifting certain assets into the trust. The trustees assume the job of managing and overseeing the trust assets, they do this for the benefit of the current and often future beneficiaries. The trustees have a fiduciary relationship with the beneficiaries, meaning they are obliged to put the beneficiaries’ interests above their own. They are also the legal owners of the assets in the trust. Trusts allow for flexibility and control over where, when and under what conditions someone’s assets are used to provide a benefit to someone else. A case study is being provided to demonstrate use of Trust and how it is beneficial for asset protection/family succession.

The Introduction of Foundations further reinforces Dubai as a platform for wealth management, succession and estate planning. Endowed with legal personality, a Foundation is viewed as a combination of a Trust with certain characteristics of a regular company. Basically, a foundation is established by a Founder who donates assets with which to achieve the objects of the foundation. The objects can be both charitable and non charitable, or both simultaneously, and can be either for the benefit of persons or class of persons or to carry out a specified purpose. The Founder’s intentions for the Foundation are set out in a charter to determine how the assets are to be dealt with, for what purpose or for whose benefit, although such objectives can be less specific provided the mechanism by which such decisions are to be made is clearly defined. Foundations are usually used for asset protection, inheritance planning, wealth management, charitable purposes and general asset-holding purposes.

Funds are generally structured as companies, limited partnerships and protected cell companies and are authorised to operate as either an open-ended fund or a closed-end fund under the Securities Act 2005. A fund can be self-managed or appointed a CIS manager subject to the approval of the Regulator. However, most funds choose to incorporate a CIS Manager, also known as an Investment Manager, in Dubai in order to manage the CIS. Though this is not compulsory, it can help strengthen the tax residence of the CIS in Dubai. The Investment Manager will have to demonstrate a proven track record in fund management to be granted a licence by the Regulator.

A Protected Cell Company (“PCC”) is a corporate structure in which a single legal entity is comprised of a core and several self-contained Cells that have separate assets and liabilities for the purposes of separating and protecting individual Cell assets from the threat of contamination by the failure of another asset. Main Features of a protected cell company: A PCC may create one or more Cells A PCC is a single legal person The creation of a PCC does not create in respect of that Cell, a legal person separate from the company The assets of a PCC can be either Cellular assets or non-Cellular (Core) assets A PCC may in respect of any if its Cells, create and issue shares (“Cell shares”) A PCC may pay a Cellular dividend in respect of Cell shares PCCs are perceived to be of interest to a wide variety of insurance companies – life insurance companies and general insurance companies, mutual funds or other forms of collective investment scheme for the following reasons: Reduced administration costs Reduced individual regulatory compliance The better investment security environment Better returns for the investor

The industry expects renewed interest from sophisticated investors, Fund managers and promoters to this cost-effective and tax-efficient corporate structure coupled with Dubai. continuing achievements in terms of good corporate governance, proven top level service for set up and administration of private equity funds and the prime aim to protect the interests of investors. An SPF is a Collective Investment Scheme (“CIS”) or a Closed-Ended Fund (“CEF”), authorized by the FSC as a Special Purpose Fund, which shall offer its shares to sophisticated investors with a maximum of 50 investors and a minimum subscription of USD 100,000 per investor and shall always be managed by a CIS manager; and administered by a CIS administrator.