Many expats living in Dubai build wealth across borders, property in different countries, investment portfolios, business interests, and family assets that need long-term protection.
As wealth grows and family situations become more complex, traditional wills alone may no longer be enough. This is why more expats are exploring foundations and trusts in Dubai as part of a comprehensive estate and wealth planning strategy.
This guide explains what foundations and trusts in Dubai is, how they work in the UAE, and who should consider setting one up.
What are Foundations and Trusts in Dubai?
At a high level, both foundations and trusts are legal structures used to hold and manage assets for the benefit of others. However, they work in slightly different ways.
- A trust separates ownership and control of assets.
- A foundation is a standalone legal entity created to hold assets for a specific purpose or beneficiaries.
Both are commonly used for:
- Asset protection
- Wealth preservation
- Succession and estate planning
- Cross-border structuring
What is a Trust?
A trust is a legal arrangement where:
- A settlor transfers assets into the trust
- A trustee manages those assets
- Beneficiaries receive benefits according to the trust terms
How Trusts Work in Practice
Once assets are placed into a trust:
- They no longer belong to the settlor personally
- The trustee must follow the trust deed
- Assets are managed for long-term benefit
What is a Foundation?
A foundation is a separate legal entity, similar to a company but without shareholders.
Key Characteristics of a Foundation
- Assets belong to the foundation itself
- Managed by a foundation council or board
- Operates according to a charter and regulations
- Beneficiaries benefit indirectly
- More control
- Clear governance
- A structure that feels less “trustee-dependent”
Foundations and Trusts in Dubai: How Do They Work?
The UAE has developed internationally recognised frameworks that allow expats to use both trusts and foundations within a robust legal environment.
Common jurisdictions include:
- Dubai-based financial zones
- Specialised foundation registries
These structures are designed to work alongside:
- UAE wills
- Global wills
- International estate plans
Who should consider a Foundations and Trusts in Dubai?
1. Expats with Significant Assets
If you own:
- Multiple properties
- Investment portfolios
- Business interests
2. Families Planning for Succession and Inheritance
For families concerned about:
- Future generations
- Minor children
- Blended families
- Cross-border inheritance laws
3. Business Owners and Entrepreneurs
Foundations and trusts are often used to:
- Hold shares in operating companies
- Protect businesses from personal risks
- Ensure smooth ownership transition
4. International Families with Assets in Multiple Countries
When assets span jurisdictions, foundations and trusts:
- Reduce legal conflicts
- Support coordinated global estate planning
- Work alongside Global Wills
Benefits of Using Foundations and Trusts in Dubai
Key advantages include:
- Asset protection from personal liabilities
- Clear succession planning
- Long-term wealth preservation
- Confidentiality and privacy
- Compatibility with international estate planning
Common Misunderstandings
- Foundations and trusts are only for the ultra-wealthy
- They replace wills entirely
- They are too complex for expats
How Foundations and Trusts Fit with Wills
A foundation or trust:
- Holds and manages assets
- Defines long-term rules
- Deals with assets outside the structure
- Appoints guardians
- Completes the overall estate plan
FAQs - Foundations and Trusts in Dubai
1. Are foundations and trusts legal in the UAE?
Yes. The UAE provides well-established legal frameworks for both.
2. Do I need to live in Dubai to set one up?
Not necessarily. Many structures can be established remotely.
3. Can foundations and trusts hold overseas assets?
Yes. This is one of their most common uses.
4. Do these structures replace the need for a will?
No. They usually work alongside wills.
5. Are foundations better than trusts?
Neither is universally better, it depends on your objectives.
6. Are these structures suitable for expats?
Yes. They are widely used by international families living in Dubai.
Conclusion
Foundations and Trusts in Dubai – A Complete Guide for Expats highlights one key message:
As wealth becomes more international and family structures more complex, advanced planning tools become essential.
Foundations and trusts offer:
- Protection
- Control
- Long-term certainty