UAE Families Embrace Foundations for Asset Protection Amid Wealth Transfer
Why UAE families are turning to foundations to safeguard their assets
Image: Gulf News
A recent report highlights a significant wealth transfer in the Middle East, with the UAE expected to exceed $1 trillion in domestic financial wealth by 2026. However, many families lack formal plans for asset management, leading to potential delays and challenges during inheritance. Foundations emerge as a practical solution for seamless wealth transition.
- 01The Middle East is projected to experience a wealth transfer exceeding $1 trillion by 2030, with the UAE leading this trend.
- 0224% of asset holders in the UAE do not have a formal plan for their personal and investment assets.
- 0353% of families find organizing and allocating assets too time-consuming, leading to reluctance in planning.
- 04Foundations offer a separate legal entity for holding assets, facilitating smoother wealth transitions without entering probate.
- 05RAK International Corporate Centre provides a clear legal framework for establishing Foundations in the UAE.
Advertisement
In-Article Ad
Research from the DIFC Innovation Hub, Julius Baer, and Euroclear indicates that the Middle East is on track for a wealth transfer exceeding $1 trillion by 2030, with the UAE's domestic financial wealth expected to surpass $1 trillion by 2026. Despite this growth, many families in the UAE are unprepared, with 24% lacking formal asset management plans. The report highlights that 53% of families find asset organization too complex, and 73% hesitate to discuss legacy planning. Foundations are emerging as a viable solution, allowing families to hold assets in a separate legal entity, thus avoiding lengthy probate processes. RAK International Corporate Centre is a key authority for establishing Foundations in the UAE, providing a structured approach to wealth preservation. This method not only eases asset transfer but may also offer efficiencies under the UAE Corporate Tax regime, making it an attractive option for families looking to secure their wealth for future generations.
Advertisement
In-Article Ad
The trend towards Foundations for asset protection addresses the significant planning gap among UAE families, ensuring smoother transitions of wealth and reducing probate delays.
Advertisement
In-Article Ad
Reader Poll
How prepared do you feel about planning for asset inheritance?
Connecting to poll...
Read the original article
Visit the source for the complete story.