Would you advise on using a UAE foundation for a Muslim uae resident who wants to own stocks and circumvent Shariah specific estate split laws? In the case of death. I'm wondering what's the best structure to hold a stock portfolio in the UAE to avoid this.
Assets in a foundation will be distributed in accordance with distributions provisions of the foundation. If, however, the foundation was setup to circumvent the law I imagine that the foundation could be challenged. There is no restriction that I am aware of that prohibits Muslims from contributing assets to foundations. That said, we always involve Muslim religious advisors when setting up foundations for Muslim clients to ensure it is done properly.
Would you advise on using a UAE foundation for a Muslim uae resident who wants to own stocks and circumvent Shariah specific estate split laws? In the case of death.
I'm wondering what's the best structure to hold a stock portfolio in the UAE to avoid this.
Assets in a foundation will be distributed in accordance with distributions provisions of the foundation. If, however, the foundation was setup to circumvent the law I imagine that the foundation could be challenged.
There is no restriction that I am aware of that prohibits Muslims from contributing assets to foundations. That said, we always involve Muslim religious advisors when setting up foundations for Muslim clients to ensure it is done properly.