Family Foundation - What does it give to the founders?

Family Foundation - What does it give to founders?

The Foundation is to ensure that family businesses remain in the hands of families (or other persons specified by the Founders) without fear of their fragmentation or a drastic change in the adopted policy and business goals.

Who's Who at the Family Foundation

Founder – The Founder is the person who establishes the Family Foundation. This can only be a natural person who has full legal capacity. If the Family Foundation has more than one Founder, they exercise their rights and obligations jointly, unless the statute provides otherwise. Importantly, the rights and obligations of the Founder are inalienable, however, he may entrust the exercise of his rights to another person in the statute, at the same time defining its scope.

Beneficiary, i.e. a person benefiting from the establishment and operation of the Foundation by receiving benefits – or property in the event of dissolution of the Foundation, may be a natural person, e.g. the Founder together with members of his/her family who have been entered on the List of Beneficiaries of the Foundation.

Family Foundation - What does it give to founders?

Family Foundation – What is it?

Foundation Statute is a key document that defines the principles of operation of the foundation, including the management of assets, designation of beneficiaries and rules of succession.

Foundation Board is responsible for its day-to-day management, while the foundation's supervisory board (if established) performs a supervisory function. These bodies may include both family members and external experts, which ensures professional management of assets.

Family Foundations offer a number of benefits tax, including the possibility of tax optimization when transferring assets between generations. A properly planned foundation structure can minimize tax burdens related to inheritance, donations or the sale of assets.

The Family Foundation allows flexible asset management, which can significantly reduce tax burdens. Transferring assets to a Family Foundation is usually not taxed, and further transfers of funds to beneficiaries can be made on more favorable tax terms.

Bodies of the Family Foundation:

Management:

manages the affairs of the family foundation and represents it externally:

implements the objectives of the Family Foundation as specified in the statute;
meets the benefits due to beneficiaries;
performs other tasks specified in the act or the statute;
Only natural persons with full legal capacity may be its members.

Supervisory Board (mandatory body if the number of beneficiaries exceeds 25 persons):

performs supervisory functions in relation to the management board;
performs other tasks specified in the act or the statute;
Only natural persons with full legal capacity may be its members.

Beneficiaries' Meeting

reviews and approves the financial statements of the family foundation for the previous financial year;
grants discharge to members of other bodies;
performs other tasks specified in the act or the statute.

Additional information: The Family Foundation is managed by a specially selected trustee for this purpose. Management. Additionally, a Family Foundation may also be subject to separate supervision by the Supervisory Board. A Beneficiary Assembly also operates at a family foundation. The Founder may specify in the statute which persons and with what qualifications and skills will sit on the Foundation's bodies. Such a diversified structure of a family foundation allows for effective management of the Foundation, while maintaining the agency and influence on its shape by the Founder and persons designated by him. The Founder may sit on the Management Board and the Beneficiary Assembly at the same time.

A family foundation is an innovative succession solution

The process of establishing a Family Foundation:

Submission by the Founder of a declaration on the establishment of a Family Foundation in the articles of association or in the will (notarial deed);
Preparation of the statute (notarial deed) and inventory of property;
Establishing the bodies of the Family Foundation and contributing the founding fund;
Entry into the register of Family Foundations kept by the District Court in Piotrków Trybunalski (special procedure);
Obtaining a Tax Identification Number (NIP) and National Business Registry Number (REGON), a bank account number, and registering a Family Foundation with the CRBR.