We are often asked, what are our most important assets? This can lead to a myriad of responses, with the most common being, “our children”.
Families often spend fortunes, protecting, educating and nurturing their children, to allow them to make their own way in the world. Alarmingly, there are a number of countries, where the protection of a family’s name and the identity of its members is of utmost importance.
Children Spreading Their Wings
There comes a point in each child’s life when they must leave the protection of the family and enter the wider world for educational or career purposes. This will often mean that a late teen or adult child will move to a larger city or different country, away from the security and protection of their family.
This relocation, will often lead to a natural increase in the exposure of both the child’s name and the family name in the new city.
Many families want to financially assist their children in making the move, but sometimes it can be difficult and inconvenient to do so. For example, if the family wants to open a bank account in the foreign jurisdiction, it can often be expensive and difficult to do so and can often lead to an increase in the exposure of their family name.
Use of a Nevis Educational Foundation
Through the use of a Nevis Educational Foundation, Dixcart can assist a family by reducing, as far as possible, the identity of the child and the family’s name in the new city/country.
Dixcart can establish a structure that provides confidentially and security to the child and the family. The structure means that the identity footprint of the child, in the new city, would be greatly reduced. It would also allow for additional children to be assisted in later years, within the same structure.
How Does a Nevis Educational Foundation Work?
A Nevis Educational Foundation may be able to enter into residential leases and/or other significant legal commitments, such as the payment of university fees, the purchase of a car etc. In this way, both the agreements and the payments would be confidential and would not feature the family name.
A Confidential Pre-paid Credit Card
The Nevis Foundation can maintain a bank account and a confidential credit card account in a selection of currencies. Education and accommodation expenses can be paid by the Foundation, directly from its bank account. Daily living expenses can be met using the confidential credit card.
In order to maintain confidentiality, the card does not feature the holder’s name, nor the name of the Foundation, nor the bank’s name. The family can therefore considerably reduce the public profile that the young person will be exposed to, outside of their purely academic environment.
Administration of the Credit Account
The managers of the Foundation would also have real time access to the credit facility account. They would be able to monitor spending, including precisely where and to whom the spending has taken place and could amend the levels of funding to each allocated card.
These pre-paid cards currently operate in five currencies and new cards can be issued for additional children in subsequent years.
Compliance is a very important factor and each family would need to provide comprehensive background information and due diligence. This would need to include full source of fund details and additional information relating to their wealth. The Registered Agent, such as Dixcart, the bank and the credit card company, will all be fully compliant with the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.