Family foundations – establishment and advisory services for funders
How ALTO can support you in establishing a family foundation?
We ensure the smooth establishment of a family foundation. We also offer support at every stage of the registration and operation of the foundation, and will answer any questions related to the process
As the ALTO team, we are able to assist you in both complex reorganization processes leading to the creation of a family foundation with a larger number of funders and beneficiaries and a diverse base of contributed assets, as well as standardized and cost-effective foundation creation processes as a tool for reinvesting family assetss.
Operating on the basis of the standards and mechanisms we have developed allows us to offer a favorable rate for services, while ensuring the highest standards of client support.
You are interested in being quickly and cost-effectively guided through the process of establishing a family foundation as a base for further family wealth building?
Basic package – establishment of a family foundation
ALTO will provide support, including a standardized package of activities necessary to establish a family foundation. In a uniform amount of compensation agreed upon in advance.
Services within the basic package will include:
- Establishment of a family foundation for a single founder/spouses of the founders (preparation of the statute on the basis of a questionnaire, with simple rules for the definition of beneficiaries and management of the foundation by its bodies and with no need for legal title analysis or reorganization activities with respect to the assets contributing to the founding fund);
- Registration of the family foundation in the court of registration, including representation of the founder before that court;
- Obtaining NIP and REGON numbers;
- Filing a notification in the Central Register of Real Beneficiaries(CRBR);
- Package of 5 hours of tax and legal consultation on additional issues related to the establishment of a family foundation and the contribution of assets to it.
Fill out a simple questionnaire to find out the price quote for you:
If you are considering the reorganization of an already functioning group of companies with the establishment of a family foundation as an entity that brings together the assets of the owners, please check our offer.
Comprehensive package – consulting in the reorganization of a group of companies
If you need full-scope support, the ALTO team along with the tax advisors, attorneys, and legal counselors, in addition to setting up a family foundation for life, are also able to provide support in the following areas:
- A detailed analysis of the tax implications for funders and beneficiaries in typical situations related to the operation of the foundation, but also in the event of termination of its legal existence;
- Identification of risks or tax sensitivities associated with the establishment and operation of a family foundation;
- Reorganization of assets before they are transferred to a family foundation;
- Obtaining individual tax interpretations in recommended areas;
- Legal assistance in structuring family succession rules within the family foundation mechanisms;
- Support in the process of bringing in additional assets and in the continued ongoing operation of the family foundation;
- Creation of internal regulations for holding, among other things, meetings of beneficiaries by means of remote communication (so-called remote meetings).
Contact us to discuss the details.
If you are interested in accounting or auditing support for your family foundation – contact us to talk about the details.
For more information on accounting services for a family foundation, see here>>
Regardless of the chosen model of cooperation, ALTO’s priority in the process of establishing a family foundation always remains to tailor its structure to the needs of its clients, as well as to propose the best solutions to make the foundation sustainable and provide an appropriate level of flexibility for the future.
What is a family foundation?
A family foundation is a new type of legal entity, operating in the Polish legal order since May 2023. It was introduced to enable both businessmen and non-business individuals to manage their assets and plan its succession for the benefit of family members or for charitable purposes.
Due to the entity exemption and favorable tax rules, the family foundation also unquestionably provides an attractive haven for those interested in accumulating and multiplying their wealth.
There is no obstacle to combining these two perspectives, taking into account both the current and future plans of the founder. According to the purpose indicated in the law, a family foundation can serve both the accumulation and management of family assets in the interests of beneficiaries.
Who can establish a family foundation?
A family foundation can be established by any individual, regardless of citizenship or country of residence. In order to establish a foundation, it is required to adopt its charter in the form of a notarial act and make a minimum contribution of PLN 100,000.
For this reason, a family foundation is recommended especially for medium and large businessmen or individuals with significant assets.
Why should you start a family foundation?
The family foundation’s income from statutorily permitted activities is covered by the CIT exemption. As a result of the entity exemption, a family foundation’s current income is not subject to tax, which increases the pool of funds for reinvestment and improves the family foundation’s ability to multiply the founders’ wealth.
In addition to the CIT exemption of current income, tax preferences are also available for the payout of benefits to beneficiaries and the dissolution of the family foundation.
However, the tax regulations for a family foundation have their own peculiarities, exceptions, unclear deadlines and sanctioned tax rates.For this reason, when deciding to establish a family foundation, it is good to seek professional help.
Main advantages of the family foundation
- A succession planning tool. A family foundation allows for succession planning and preservation of accumulated wealth within the family and its continued management in accordance with an established vision.
- Favorable tax solutions. The legislator has provided a number of tax advantages for the family foundation, making it easier to protect and multiply family assets.
- Privacy. Access to the information included in the register of family foundations is available only to those directly related to the foundation and those who demonstrate a legal interest. Information on the foundation is therefore subject to additional protection, making it possible to ensure greater confidentiality regarding the assets accumulated, as well as how they are managed.
- Flexibility. Family foundations can be managed either directly by the founder or by a designated beneficiary or an external specialized entity, which gives the founder the freedom to determine his or her role in the foundation. Appropriately structured charter provisions can also allow the family foundation’s structure to be adjusted at a later date to accommodate possible changes in family wealth management strategies
- Strategy for years. The family foundation is a tool that ultimately allows planning the future of accumulated wealth for many years ahead, which guarantees stability and security for future generations. At the same time, it does not require the definition of a rigid framework and direction already at the foundation establishment stage, and can be adjusted within the framework of the adopted family wealth management policy.