Locked Money: Unleashing the Power of Foundations for All
Greetings, dear reader! I’m thrilled to bring you another article on Locked Money. But, before we dive in, I want to assure you that this won’t be a heavy technical read.
Instead, it’s a friendly and relatable chit-chat about an aspect of Locked Money that’s often misunderstood: Foundations.
You’ve probably come across the term ‘Foundation’ in relation to Locked Money, right? But if you’re like most people, you’re likely scratching your head, wondering what it’s all about.
Well, let’s unravel this mystery together.
Think of a foundation as a separate entity that’s established to manage assets for a specific purpose. It’s similar to a company, but there are no shareholders involved. Instead, we have a board or trustees who ensure these assets are used for the foundation’s purpose.
Foundations have been around for centuries, offering significant benefits in tax and asset protection. It’s like having a personal fortress that guards your assets from financial storms while also offering tax breaks.
Sound good so far? Well, it gets better!
When you transfer assets to a foundation, they legally belong to the foundation, not you. This protects your assets from personal liabilities, such as lawsuits, creditor claims, or bankruptcy cases. It also exempts them from personal or corporate income tax. This can lead to significant tax savings, making foundations a popular asset management tool.
Think of setting up a foundation like starting a journey. The person who begins this journey is the ‘founder.’ He then provides a ‘Letter of Wishes’ to the navigator or ‘trustee.’ This letter isn’t a formal roadmap, but it’s a crucial part of the journey. It’s the founder’s way of sharing their intentions or offering advice on how they’d like the assets of the foundation to be managed or distributed.
This ‘Letter of Wishes’ can be thought of as a traveler’s guide. It can include specific instructions on how assets should be used or distributed, like a detailed itinerary. It can also present the founder’s overall philosophies or values, acting as the moral compass that should guide the management of assets.
The trustee is like the captain of the ship, ensuring that assets are used correctly and aligned with the foundation’s mission. This is an integral part of the foundation structure. It provides a system of checks and balances that protects the foundation’s assets and mission.
The trustee is tasked with acting in the best interests of the foundation, making responsible decisions about the use of assets. They must ensure that assets are used for the foundation’s purpose, like a captain steering the ship toward its destination.
Now, imagine you’re a successful businessperson with a stockpile of assets. You can establish a foundation, transfer a big part of your assets there, and voila! You’ve not only protected your assets from personal liabilities but also optimized your taxes.
Now, let’s get back to Locked Money.
We’re super excited soon to offer our users an easy, safe, and decentralized way to access foundations. When you become a Professional tier member, you become a beneficiary of the foundation and can enjoy all its benefits. Plus, you’ll have your trustee who safeguards your assets and acts as a co-signer on your transactions.
“But what if the trustee disappears?” you ask. Don’t worry, we’ve got that covered too! If necessary, you can dissolve your connection with the foundation and revert the assets back to your personal ownership. That’s what we call trustless, timeless, seedless, and riskless!
Isn’t it amazing to live in this era of decentralization where such benefits are accessible to everyone? We’re opening doors for everyone to use asset management tools that were previously only available to the wealthy.
