What are the obligations of the founder of a family foundation?

The founder, as the person establishing the foundation, plays a key role in its creation and operation. His or her duties are defined by the law and the foundation's internal regulations, such as the statute.

What are the main tasks and responsibilities of a family foundation founder in Poland? We will try to provide a concise answer to this question below:

Contents

1. Preparation of the articles of association

The first obligation of the founder is to prepare the foundation act in the form of a notarial deed. This document constitutes the formal foundation of the foundation. The founder is responsible for precisely defining the basic assumptions of the foundation, which will influence its future functioning.

2. Preparation of the foundation's statute

The statute of a family foundation is a key document regulating the detailed rules of its operation. The founder has the obligation and the possibility to formulate its content, often with the help of legal and financial advisors. The founder should pay special attention to the compliance of the statute with the purpose of the foundation and the needs of the family and beneficiaries.

3. Contribution of assets to the foundation

The founder is required to contribute initial assets to the foundation, which must be worth at least PLN 100,000. These assets may include money, real estate, shares, company shares or other assets. Contributing assets is an irreversible act - after transfer, they become the property of the foundation, not the founder.

4. Designation of beneficiaries

The founder is required to determine who will be the beneficiary of the family foundation. Beneficiaries can be members of the immediate family, distant relatives, or even unrelated people. The founder also decides what rights the beneficiaries have, e.g. to receive benefits or use the foundation's assets.

5. Ensuring legal compliance

The founder must ensure that the foundation operates in accordance with the law and the provisions of the statute. It is his duty to create transparent rules that will enable the foundation to achieve its goals in a manner consistent with applicable regulations.

6. Possible performance of functions in the foundation's bodies

The founder may, but does not have to, hold positions in the foundation's bodies, such as the management board or supervisory board. If he or she decides to take on such a role, his or her duties include overseeing the foundation's activities, making investment decisions, and providing benefits to beneficiaries.

7. Supervision over the foundation's activities

The founder, regardless of the functions performed, often retains the right to supervise the foundation's activities. This may include, for example, the right to veto key board decisions or the authority to make changes to the statute.

8. Taking care of the interests of beneficiaries

The primary purpose of a family foundation is to protect assets and provide benefits to beneficiaries. The founder has a duty to ensure that the foundation is run in a way that ensures the achievement of these goals. This includes responsibility for selecting appropriate people to manage the foundation and overseeing its operational activities.

Summary

The obligations of the founder of a family foundation are broad and include the planning phase, creation of the foundation, and supervision of its activities. The founder must prepare the articles of association, develop the statute, contribute assets, identify beneficiaries, and ensure compliance of the foundation's activities with the law. Although after the transfer of assets, the founder loses formal ownership rights over them, in practice they can retain significant influence on the functioning of the foundation by serving on its bodies or supervising them. A family foundation is an effective tool for succession, but it requires a responsible approach and careful planning on the part of the founder.

PMR team

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