Diversifying and preserving global wealth with trusts and foundations
- Mohamed Baluchi
- Jun 3
- 4 min read
Over my two-decade career in private banking and asset management, I’ve seen the industry evolve dramatically. While that may sound like a long stretch (and probably is!), it’s flown by – perhaps because financial services is a fascinating, ever-changing world. At its core, though, my work remains centred on building and managing trusted relationships across cultures and backgrounds.
Living and working across Europe, Africa, and Asia has enriched my perspective and allowed me to form lasting personal and professional bonds. I’ve had the privilege of working with a diverse range of clients, intermediaries, and introducers—each offering insights that have shaped my technical understanding and advisory style.
Think of my role like that of a financial general practitioner: a trusted advisor offering holistic guidance across the spectrum of wealth – its creation, growth, preservation, and eventual transfer. For more specialist matters, outside of my scope of work, I connect clients to a trusted global network of experts. What drives me is helping internationally mobile individuals and families find clarity in their financial lives.
In this article — part of Interpolitan’s Wealth Structures series – I’ll outline two time-tested tools for holding, safeguarding, and transferring wealth: trusts and foundations. While some readers may be well-versed in these, others might be less familiar. I’ll also share why clients choose specific jurisdictions and what makes certain destinations preferable.
Why trusts and foundations matter
For internationally active individuals and families, wealth structuring is essential. Trusts and foundations – while familiar to some cultures – are often underutilised by otherwise astute clients, usually due to a lack of access to sound advice. Even those who have structures in place may not have reviewed them in years, leaving them outdated in an evolving fiduciary landscape.
These vehicles are particularly valuable for managing complex, cross-border asset portfolios – often governed by varying legal systems such as civil, common, or Sharia law. Cultural attitudes toward relinquishing control or validating legal structures also play a role in planning.
Common reasons for establishing trusts and foundations include:
Asset protection
Estate and succession planning (two distinct disciplines)
Wealth preservation
(Less commonly now) Tax planning
Other tools, such as Family Investment Companies or Private Placement Life Insurance (PPLI), can complement these and will be covered in future articles.
Globalisation has transformed family dynamics. Where family businesses once operated from a single base, today’s families often span continents. That brings challenges: intergenerational wealth transfer, maintaining harmony and minimising disputes, shielding assets, and avoiding forced heirship laws. Trusts and foundations provide the legal scaffolding to navigate these complexities.
Trusts, grounded in common law, separate legal and beneficial ownership. The settlor transfers assets to trustees, who legally own and manage them for beneficiaries.
Foundations are an innovative hybrid of companies and trusts. They are entities with their own legal personality, governed by a nominated council. Beneficiaries receive benefits, and protectors (trusts) or guardians (foundations) may offer oversight and advice – similar to non-executive directors in a company.
The offshore advantage: privacy and pedigree
Should clients set up structures in their country of residence? Sometimes but not always. Consider UK companies: their records are public. In contrast, foundations established in UAE free zones offer greater privacy. But privacy alone isn’t enough. Jurisdictional strength is key. For instance:
Jersey offers centuries of legal precedent in trust law, providing unmatched confidence in dispute resolution.
The UAE, while newer, is evolving rapidly. Its foundation law is becoming more robust, with increasing integration of common law elements to accommodate its global expat population.
Clients often prefer jurisdictions outside their home country for geopolitical safety and legal certainty. Larger providers may offer scale; smaller ones, flexibility. In all cases, it’s vital to assess their professional indemnity coverage and fiduciary competence.
Choosing the right jurisdiction
Several factors influence jurisdiction selection (list not exhaustive):
Cost (less expensive options are often cheaper for a reason)
Proximity and cultural familiarity
Legal and regulatory pedigree
Tried and tested jurisdictions such as Jersey, Guernsey, and Switzerland continue to dominate, though newer players are gaining traction. Switzerland, despite adapting its banking secrecy laws due to FATCA and pressure from the US government, remains a global favourite for its deep advisory ecosystem and legal consistency. Ultimately, fiduciary structures rely on trust – trust in the people managing your assets and in the jurisdiction’s rule of law.
Establishing a trust or foundation can be complex and time intensive. That’s why region-specific guidance is essential for a sound, multi-generational wealth strategy.
Increasingly, we also see clients incorporating family constitutions or charters, which strengthen governance and have the intent of ensuring long-term family cohesion. This is another specialist area where obtaining proper advice is essential.
How Interpolitan supports the global wealth ecosystem
At Interpolitan, we specialise in helping clients open and manage complex accounts across jurisdictions. As a boutique, founder-led, and independent Electronic Money Institution, we offer something rare – direct access to decision-makers and fast turnaround combined with the highest standards of compliance. What sets us apart?
A diverse, culturally intelligent team
A strong global presence in major financial hubs
Recognition on The Sunday Times Best Places to Work and Deloitte’s growth rankings
We regularly collaborate with IFAs, lawyers, tax advisors, and wealth practitioners to deliver a holistic experience. Whether it’s structuring wealth, managing payments, or planning for the next generation – we bring in the right people at the right time.
Remember, choosing the right wealth structure isn’t just a technical decision. It’s about choosing the right people, jurisdictions, and partners. The right advice makes all the difference in preserving wealth for future generations and we can help guide you to the right partners.
Mohamed Baluchi is a Director at Interpolitan. He is also a Chartered Wealth Manager/Chartered Fellow of the Chartered Institute for Securities & Investment and a Member of the Institute of Directors. Mo has been recognised and featured in the Spears 500, Citywealth Leaders and Private Client Global Elite Lists.
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